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On November 1 of the current year, Lois Bell began Lois Bell, Interior Design with an initial investment of $50,000 cash. On November 30 her records showed the following (alphabetically arranged) items and amounts.

Accounts payable $12,000 Accounts receivable $23,000
Cash $20,000 Fees earned $30,000 Notes Payable $4,250
Office furnishings $40,000 Owner's withdrawals $6,000
Prepaid expense 200 Rent expense $3,600
Salaries expense $6,200 Telephone expense $250
Unearned fees $3,000

Net income on the November 30 income statement would be:___________

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Tundexi

The Net income for Lois Bell is $19,950.

                Lois Bell Interior Design

Income statement for the month of November 30

Particulars                                        Amount

Revenues:

Fees earned                                    $30,000

Expenses:

Rent Expense                 $3,600

Salaries expense           $6,200

Telephone expense      $250

Total expense                                   $10,050

Net Income                                       $19,950

  • Let understand that Prepaid expense and Unearned fees are not to be treated under Income statement, rather, they are entry for Asset and Liability in the Balance sheet.
  • The initial investment amount will be treated as Common stock under Stockholder equity section.

  • In conclusion, the amount Net income on the November 30 for Lois Bell is $19,950.

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