Question

The adjusted trial balance of Grouper Corp. at December 31, 2022, includes the following accounts: Retained Earnings $16,300, Dividends $5,800, Service Revenue $36,100, Salaries and Wages Expense $13,800, Insurance Expense $1,790, Rent Expense $4,010, Supplies Expense $1,490, and Depreciation Expense $850.
Required:
Prepare an income statement for the year.

Answer 1

Answer:

net income is $ 14,160.00  

Explanation:

The income statement from which the net income for the year is derived is shown below:

Grouper Corp. Income Statement as at 31 December ,2022.

Service revenue                                                       $36,100

salaries and wages  expense $13,800

insurance  expense                 $1,790

rent expense                            $4,010

supplies expense                    $1,490

depreciation expense             $850

Total expenses                                                       ($ 21,940)

Net income                                                                $ 14,160

ending retained earnings =$ 14,160.00+$16,300.00-$5,800.00=$24,660.00