Question

Green Duck earned fees of 64,300 for its fiscal year. Its expenses for the year are as follows: Rent Expense,15,000; Interest Expense, 2,480; Salaries Expense,22,560; Utilities Expense, 3,900; and Insurance Expense,12,750. Prepare the company's income statement if the fiscal year ends on June 30.

Answer 1

Green Duck's income statement for the fiscal year ending on June 30 shows a total revenue of $64,300 and total expenses amounting to $56,690, leading to a net income of $7,610.

Step-by-step explanation:

Green Duck Fiscal Year Income Statement

To prepare the company's income statement for the fiscal year ending on June 30, we must calculate the total expenses and subtract them from the company's earned fees to determine the net income. Here's the detailed calculation:

Revenues:

Fees Earned: $64,300

Expenses:

Rent Expense: $15,000

Interest Expense: $2,480

Salaries Expense: $22,560

Utilities Expense: $3,900

Insurance Expense: $12,750

Total Expenses = $15,000 + $2,480 + $22,560 + $3,900 + $12,750 = $56,690

Net Income: Fees Earned - Total Expenses

Net Income = $64,300 - $56,690 = $7,610

The Net Income figure represents the profit that Green Duck has made for the fiscal year after all expenses have been accounted for.