The following account balances appear in the 2021 adjusted trial balance of Beavers Corporation: Service Revenue, $245,000; Sala
ries Expense, $104,000; Supplies Expense, $17,000; Rent Expense, $23,000; Depreciation Expense, $38,000; and Delivery Expense, $15,000. Prepare an income statement for the year ended December 31, 2021.
1 answer:
Answer:
Explanation:
In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
Before preparing the income statement, we have to compute the net income or net loss for the given period which is shown below:
Net income = Service revenue - Salaries Expense - Supplies Expense - Rent Expense - Depreciation Expense - Delivery Expense
= $245,000 - $104,000 - $17,000 - $23,000 - $38,000 - $15,000
= $48,000
The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:
You might be interested in
Answer:
The answer is "Option 4".
Explanation:
The Herfindahl-Hirschman Index formula:
here sn is the firm n's share of the market proportion represented the society in general number instead of a decimal
Index Herfindahl-Hirschman:
Index Herfindahl-Hirschman(Result of the merger, firms with profit margins of 6% and 5% provided market shares of respectively).
The market with just an HHI of less than 1,500 is called a competitive industry, one on an HHI of 1,500 to 2,500 is called a moderately competitive store, and one on an HHI of 2,500 or higher is considered a highly potent store by us Justice department.
All businesses operate in a moderately crowded market, as well as a merger such as this reduces competition (increases chances of monopoly). Also as result, the Justice Dept may examine its merger but will most likely deny this because the Herfindahl-Hirschman index has risen.
