Question

Exercise 201 This information relates to Crane Co. for the year 2022. Retained earnings, January 1, 2022 $56,000 Advertising expense 1,800 Dividends paid during 2022 10,000 Rent expense 10,000 Service revenue 63,500 Utilities expense 2,300 Salaries and wages expense 25,300

Answer 1

Explanation:

The preparation of the year-end 2022 income statement for Crane Co.is shown below:

                                                         Crane Co.

                                               Income statement  

                                                For the year 2022

Revenue  

Service revenue $63,500

Total revenues $63,500 (A)

Less: Expenses

Advertising expense $1,800

Rent expense $10,000

Utilities expense $2,300

Salaries and wages expense $25,300

Total expenses $39,400 (B)

Net income $24,100 (A- B)