Question

This information relates to Sunland Company for the year 2022. Retained earnings, January 1, 2022 $77,700 Advertising expense 2,080 Dividends 6,960 Rent expense 12,000 Service revenue 67,280 Utilities expense 2,900 Salaries and wages expense 34,800 Prepare an income statement for the year ending December 31, 2022

Answer 1

Answer:

Explanation:

The preparation of the year-ending December 31, 2022 income statement for Sunland Company is presented below:

                                            Sunland Company

                                            Income statement  

Revenue  

Service revenue $67,280

Total revenues $67,280(A)

Less: Expenses

Advertising expense $2,080

Rent expense $12,000

Utilities expense 2,900

Salaries and wages expense 34,800

Total expenses $57,780 (B)

Net income $15,500 (A- B)