Question

Paoli Consulting is a consulting firm owned and operated by Mary Paoli. The following end-of-period spreadsheet was prepared for the year ended March 31 , 20Y9:

Paoli Consulting
Income Statement
For the Year Ended March 31, 20 Y9

Unadjusted Adjusted
Trial Balance Adjustments Trial Balance
Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Cash 21,500 21,500
Accounts Receivabie 51,150 51,150
Supplies 2,400 1,650 750
Office Equipment 32,000 32,000
Accumulated Depreciation 4,500 900 5,400
Accounts Payable 3,350 3,350
Salaries Payable 2,000 2,000
Common Stock 20,000 20,000
Retained Earnings 52,200 52,200
Dividends 10,000 10,000
Fees Earned 279,000 279,000
Salary Expense 240,000 2,000 242,000
Supplies Expense 1,650 1,650
Depreciation Expense 900 900
Miscellaneous Expense 2,000 2,000
359,050 359,050 4,550 4,550 361,950 361,950

Based on the preceding spreadsheet, prepare an income statement for Paoli Consulting.

Answer 1

The income statement for Paoli Consulting shows a total revenue of $279,000 and total expenses of $246,550, resulting in a net income of $32,450 for the year ended March 31, 20Y9.

Step-by-step explanation:

Income Statement for Paoli Consulting

To prepare an income statement for Paoli Consulting, we need to calculate the total revenue, total expenses, and then derive the net income.

Total RevenueFees Earned: $279,000

Total ExpensesSalary Expense: $242,000

Supplies Expense: $1,650

Depreciation Expense: $900

Miscellaneous Expense: $2,000

Total Expenses: $246,550 ($242,000 + $1,650 + $900 + $2,000)

Net Income (Total Revenue - Total Expenses): $279,000 - $246,550 = $32,450

Therefore, the income statement for the year ended March 31, 20Y9 would show a net income of $32,450.