Question

Cornhusker Company provides the following information at the end of 2018. Cash remaining $ 3,800Rent expense for the year 6,000 Land that has been purchased 20,000 Retained earnings 11,400 Utility expense for the year 3,900 Accounts receivable from customers 6,200 Service revenue earned during the year 32,000 Salary expense for the year 12,300 Accounts payable to suppliers 1,700 Dividends paid to shareholders during the year 2,200 Common stock that has been issued prior to 2018 15,000 Salaries owed at the end of the year 1,900 Insurance expense for the year 2,500No common stock is issued during 2018, and the balance of retained earnings at the beginning of 2018 equals $6,100.Required:Prepare the income statement for Cornhusker Company on December 31, 2018.

Answer 1

Answer:

Explanation:

The income statement shows the profit or loss of a company during a particular year. The income statement shows that how much revenue is generated and how much expenses is incurred in a year.

If the revenue is greater than expenses, than the company is earning profits otherwise it suffers a loss.

= Service revenue - Salary expense - insurance expenses - utility expense - rent expense

= 32,000 - 12,300 - 2,500 - 3,900 - 6,000

= $7,300

The Cornhusker Company  has earns a net profit of $7,300 on December 31, 2018.

The table attachment is given below: