Question

As of December 31, 2017, Armani Company s financial records show the following items and amounts Cash ...................................................... $10,000 Accounts receivable .................................... 9,000 Supplies ................................................... 6,000 Equipment ................................................ 5,000 Accounts payable ........................................ 23,000 A. Armani, Capital, Dec. 31, 2016 .................... 4,000 A. Armani, Capital, Dec. 31, 2017 .................... 7,000 A. Armani, Withdrawals .............................. 13,000 Consulting revenue .................................... 33,000 Rental revenue .......................................... 22,000 Salaries expense ........................................ 20,000 Rent expense ............................................ 12,000 Selling and administrative expenses ............... 8,000 Required Prepare the 2017 year-end income statement for Armani Company. Prepare the 2017 year-end income statement for Armani Company.

Answer 1

Answer:

Explanation:

The preparation of the year-end 2017 income statement for Armani Company is shown below:

                                        Armani Company

                                      Income statement

Revenue

Consulting revenue   $33,000

Rental revenue $22,000

Total revenues $55,000 (A)

LESS: Expenses

Salaries expense $20,000

Rent expense $12,000

Selling and administrative expenses $8,000

Total expenses $40,000 (B)

Net income $15,000 (A- B)