Repeated income statement construction practice with varied numbers, automatic checking, feedback after submission, and a mastery target.
You know the three-step procedure. Now you will practice it until it is reliable. Each round gives you a new trial balance with different accounts and numbers. Your job is the same every time: pull out the revenue accounts, pull out the expense accounts, and calculate Net Income.
The Procedure (Same Every Round)
- Scan the trial balance and identify every revenue account
- Add all revenue amounts together → Total Revenue
- Scan the trial balance and identify every expense account
- Add all expense amounts together → Total Expenses
- Subtract: Total Revenue minus Total Expenses = Net Income
Rules for This Practice
- • Work through each problem on your own before submitting
- • Feedback comes after you submit, not during each step
- • If you get it wrong, read the feedback and try the next round
- • You can request a worked solution if you are stuck
- • Mastery = 3 correct answers in a row
Summit Fitness Studio — Trial Balance
| Account | Amount |
|---|---|
| Owner's Draw | $872 |
| Interest Expense | $226 |
| Utilities Expense | $175 |
| Prepaid Insurance | $964 |
| Accounts Receivable | $2,935 |
| Consulting Revenue | $4,027 |
| Service Revenue | $7,041 |
| Insurance Expense | $479 |
| Cash | $6,601 |
| Equipment | $2,299 |
| Supplies Expense | $407 |
Build the Income Statement: identify revenue accounts, identify expense accounts, calculate Net Income.
Including Balance Sheet accounts in the Income Statement
Cash, Equipment, Accounts Payable, Common Stock, and Owner's Draw are not revenue or expense. If your Net Income looks wrong, check that you only used accounts with "Revenue," "Expense," or "Income" in the name.
Treating Owner's Draw as an expense
Owner's Draw is a withdrawal of equity, not a business cost. It reduces the owner's stake in the company but does not affect Net Income.
Missing a revenue or expense line
When the trial balance has many accounts, it is easy to skip one. After you submit, if your answer is close but not exact, check whether you missed a small account.