Question

These items are taken from the financial statements of Carla Vista Co. for 2022. Retained earnings (beginning of year) $33,380 Utilities expense 2,150 Equipment 63,800 Accounts payable 18,340 Cash 14,300 Salaries and wages payable 5,510 Common stock 23,200 Dividends 12,000 Supplies 3,500 Debt investment (long-term) 6,300 Trademarks 2,100 Service revenue 72,760 Prepaid insurance 6,010 Maintenance and repairs expense 1,650 Depreciation expense 3,140 Accounts receivable 15,650 Insurance expense 2,660 Salaries and wages expense 41,730 Accumulated depreciation—equipment 21,800
Prepare an income statement for the year ended December 31, 2022.

Answer 1

Answer:

Carla Vista Co.

Income statement for the year ended December 31, 2022

                                                              $            $

Service revenue                                              72,760

Less Expenses

Utilities expense                               2,150

Maintenance and repairs expense 1,650

Depreciation expense                      3,140

Insurance expense                           2,660

Salaries and wages expense          41,730

                                                                         51,330

Profit for the year                                             21,430

Explanation:

Income statement is the summary of all the income of the company and expense as well. Income statement deals with all the revenue and expenses account so, they are included to calculate the profit.

The following account are Balance sheet account.

Retained earnings (beginning of year) $33,380

Equipment 63,800

Accounts payable 18,340

Cash 14,300

Salaries and wages payable 5,510

Common stock 23,200

Dividends 12,000

Supplies 3,500

Debt investment (long-term) 6,300

Trademarks 2,100

Prepaid insurance 6,010

Accounts receivable 15,650

Accumulated depreciation—equipment 21,800