The body shop is able to now complete 5 vehicles paint jobs for $250, $225, $200, $230, and $240 totaling $1,145. Example of journal entry for income statement New equation: 1,145 (amount paid to shop) = 475 (supplies) + 670 (take home profit)
Feb 12, 2013
Revenue- 1,145 Expenses- 475 Net Income- 670 At any given moment the auto body shop will be able to open the books to view how the company is doing financially. By these two entries it is easy to see the final amount made by the company as well as what the money was used for.