Income Statement

The Income Statement is like a scoreboard for a business. It shows how the business performed over a period of time, such as a month or a year.

·        It reports revenues (money earned) and expenses (money spent).

·        At the end, you see if the business made a profit (net income) or had a loss (net loss).

Formula:
Net Income or Net Loss = Revenues – Expenses

Example

Transactions for the Period

Business Name: ABM-Synergy Corp.
Period Covered: July-August 2025

1.     The business earned ₱12,000 from sales of products.

2.     The business earned ₱3,000 from providing services.

3.     The business paid ₱2,500 for rent.

4.     The business paid ₱4,000 in salaries to employees.

5.     The business paid ₱800 for utilities (electricity and water).

6.     The business used ₱700 worth of supplies.