Stunning Utilities Expense In Income Statement

Instead prepaid expenses are initially recorded on the balance sheet and then as the benefit of the prepaid expense is.

Utilities expense in income statement. There are various acceptable ways to report operating expenses on the income statement. GetApp helps more than 18 million businesses find the best software for their needs. For most businesses these costs should be between is 60 to 80 of gross revenue.

Different business models and industries require different operating expenses. Ad See Free Personalized Reviews of Expense Tools - Start Now. Operating expenses on an income statement are costs that arise in the normal course of business.

Every company has different operating expenses based on their industry and setup. Electricity Heat gas Sewer Water The category is sometimes also associated with expenditures for ongoing telephone and internet service. GetApp helps more than 18 million businesses find the best software for their needs.

For this transaction the accounting equation is shown in the following table. Salaries expense336900 Rent expense60000 Utilities expense41200 Depreciation expense8650 Supplies expense4100 Insurance expense1500 Miscellaneous expense3650 Total expenses456000 Net income218000. In this case the balance sheet liabilities accounts payable have been increased by 500 and the income statement has a utilities expense of 500.

In accounting utilities expense is the expense that is incurred when a utility of some type electricity natural gas water sewage garbage telephone cable or satellite TV and Internet. Under the accrual basis of accounting this account reports the cost of the electricity heat sewer and water used during the period indicated in the heading of the income statement. For instance if your small business pays 24000 in rent 2400 in utilities and 150000 in managers salaries you would report these as general and administrative expenses in the operating expenses section.

Miscellaneous Expense 3650 Utilities Expense 41200 Prepare an income statement. Depreciation expense on office building office salaries office supplies expense and office utilities expense. The non-operating section of a multi-step income statement usually labeled as other incomes and expenses contains those revenues and expenses which are not earned directly through principle business activities but are incidental to them.