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:
option (C) $3,000
Explanation:
Data provided:
Policy duration = 4 years
Policy amount = $12,000
Date on which premium is paid = January 1, 2013
Date on which entry is adjusted = December 31, 2015
Now,
The time passed between January 1, 2013 to December 31, 2015 = 3 years
Therefore,
Amount to be recognized as insurance exp. on December 31, 2015
=
=
= $9,000
Thus,
The balance in the prepaid insurance account = $12,000 - $9,000 = $3,000
Hence,
The correct answer is option (C) $3,000