Question

A company’s financial records at the end of the year included the following amounts: Cash$70,500 Accounts Receivable 28,500 Supplies 4,500 Accounts Payable 10,500 Notes Payable 5,250 Retained Earnings, beginning of year 17,500 Common Stock 45,000 Service Revenue 49,750 Wages Expense 8,500 Advertising Expense 5,500 Rent Expense 10,500 What is the amount of net income on the income statement for the year?

Answer 1

Answer: $25250

Explanation:

Based on the information provided in the question, the net income will be calculated thus:

Sales Revenue 49,750

Less: Wages Expense 8,500

Less: Advertising Expense 5,500

Less: Rent Expense 10,500

Net income= 49750 - 8500 - 5500 - 10500

= 25250

Therefore, the amount of net income on the income statement for the year will be $25250