Question

The following information was taken from the records of Rectangle Corporation for the year ended December 31, 2019. Advertising expense $120,000 Income tax expense 78,000 Accounts payable 80,700 Dividends paid 90,000 Retained earnings (Jan. 1, 2016) 347,160 Consulting fees revenue 600,000 Rent expense 70,200 Supplies expense 101,400 The net income reported by Circle Corporation for the year ended December 31, 2019 was:

Answer 1

Answer:

$230,400

Explanation:

Rectangle Corporation

Income Statement for the year ended December 31, 2019

                                                               $                         $

Consulting fees revenue                                            600,000

Less Expenses :

Advertising expense                      120,000

Rent expense                                   70,200

Supplies expense                            101,400

Income tax expense                         78,000             (369,600)

Net Income                                                                  230,400

Conclusion :

The net income reported by Circle Corporation for the year ended December 31, 2019 was $230,400