Question

PB2.

LO 2.1Conner & Scheer, Attorneys at Law, provide a wide range of legal services for their clients. They employ several paralegal and administrative support staff in order to provide high-quality legal services at competitive prices. For the year ending December 31, 2017, the firm reported these income and expenses. Using this information, construct an income statement to reflect the firm’s net income for 2017.

Answer 1

Conner & Scheer

Income statement for the year ended December 31, 2017

$

Service revenue 2,250,000

Paralegal salary (215,000)

Supplies and material (42,000)

Utilities (26,000)

Office rent (58,000)

Administrative expenses (195,000)

Attorney salaries (925,000)

Net income 786,000

Step-by-step explanation:

Net income for the year ended December 31, 2017 is obtained by deducting all expenses from service revenue.