Question

The adjusted trial balance of Grouper Corp. at December 31, 2022, includes the following accounts: Retained Earnings $16,300, Dividends $5,800, Service Revenue $36,100, Salaries and Wages Expense $13,800, Insurance Expense $1,790, Rent Expense $4,010, Supplies Expense $1,490, and Depreciation Expense $850.

Required:
Prepare an income statement for the year.

Answer 1

net income is $ 14,160.00

Step-by-step explanation:

The income statement from which the net income for the year is derived is shown below:

Grouper Corp. Income Statement as at 31 December ,2022.

Service revenue $36,100

salaries and wages expense $13,800

insurance expense $1,790

rent expense $4,010

supplies expense $1,490

depreciation expense $850

Total expenses ($ 21,940)

Net income $ 14,160

ending retained earnings =$ 14,160.00+$16,300.00-$5,800.00=$24,660.00