Question

The following information relates to carla vista co. for the year 2022. after analyzing the data prepare an income statement

Answer 1

The income statement is

Statement of Owner's Equity

For the year ended Dec 31,  2020
Owner's capital, January 1,2020        $66,370

Add: Net income                                  $25,995
                                                              $92,365

Less: Owner's drawings                       $ 8,296

Owner's capital, Dec 31, 2020            $ 84,069

This is further explained below.

What is an income statement?

Generally, A firm's financial performance during a certain accounting period is summarized in its income statement, one of the three primary financial statements that the company produces.

Service revenue                                                                         $ 87,940

Expenses: Salaries and wages expense      $ 40,790

Advertising expense                                       $ 2,489

Rent Expense                                                   $ 14,380

Utilities expense                                             $ 4,286

Total Expenses                                                                           $ 61,945

Net Income                                                                                $ 25,995

In conclusion, the income statement

Statement of Owner's Equity

For the year ended Dec 31,  2020
Owner's capital, January 1,2020        $66,370

Add: Net income                                  $25,995
                                                              $92,365

Less: Owner's drawings                       $ 8,296

Owner's capital, Dec 31, 2020            $ 84,069

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