Question

Skysong, Inc. is a private camping ground near the Mount Miguel Recreation Area. It has compiled the following financial information as of December 31, 2017.
Service revenue (from camping fees) $145,200
Dividends $9,900 Sales revenue (from general store) 27,500
Notes payable 55,000 Accounts payable 12,100
Expenses during 2017 138,600
Cash 9,350
Supplies 6,050
Equipment 125,400
Common stock 44,000
Retained earnings (1/1/2017) 5,500

Determine Skysong, Inc.'s net income for 2017.

Answer 1

Answer:

$34,100

Explanation:

The computation of the net income is shown below:

Net income = Total revenues - Total expenses

where,

Total revenues

= Service revenue + sales revenue

= $145,200 + $27,500

= $172,700

And, the total expenses is expenses incurred i.e $138,600

So, the net income is

= $172,700 - $138,600

= $34,100

As we know that the income statement records only revenues and expenses and the same is considered