Question

The following information relates to La Greca Co. for the year 2019. Retained earnings, January 1, 2019 $48,000 Advertising expense $ 1,800 Dividends during 2019 5,000 Rent expense 10,400 Service revenue 62,500 Utilities expense 3,100 Salaries and wages expense 28,000 After analyzing the data, prepare an income statement for the year ending December 31, 2019.

Answer 1

Net income $ 19,200

Step-by-step explanation:

We have to analyze the data to see which of the items belong in th the income statement.

Service Revenue $ 62,500

Advertising expenses $ 1,800

Rent expense $ 10,400

Utilities Expense $ 3,100

Salaries and Wages $ 28,000

Total Expenses $ 43,300

Income for the year $ 19,200

The other information provide i.e. opening retained earnings as well as the dividends for 2019 are balance sheet items.