Question

The following information was taken from the records of Rectangle Corporation for the year ended December 31, 2019. Advertising expense $120,000 Income tax expense 78,000 Accounts payable 80,700 Dividends paid 90,000 Retained earnings (Jan. 1, 2016) 347,160 Consulting fees revenue 600,000 Rent expense 70,200 Supplies expense 101,400 The net income reported by Circle Corporation for the year ended December 31, 2019 was:

Answer 1

$230,400

Step-by-step explanation:

Rectangle Corporation

Income Statement for the year ended December 31, 2019

$ $

Consulting fees revenue 600,000

Less Expenses :

Advertising expense 120,000

Rent expense 70,200

Supplies expense 101,400

Income tax expense 78,000 (369,600)

Net Income 230,400

Conclusion :

The net income reported by Circle Corporation for the year ended December 31, 2019 was $230,400