Question

The following information relates to Oriole Company for the year 2020.

Retained earnings, January 1, 2020 $66,240
Advertising expense $2,484
Dividends during 2020 6,900
Rent expense 14,352
Service revenue 86,250
Utilities expense 4,278
Salaries and wages expense 38,640
After analyzing tha data, prepare an income statement for the year ending December 31, 2017.

Answer 1

Answer and Explanation:

The Preparation of income statement for the year ending December 31, 2017 is shown below:-

Oriole Company

Income Statement

For the Year Ended December 31, 2017

Particulars Amount

Service Revenue $86,250

Less:

Expense

Salaries and Wages

Expense $38,640

Rent Expense $14,352

Utilities Expense $4,278

Advertising Expense $2,484

Total Expenses $59,754

Net Income/ (Loss) $26,496

Therefore for determining the net income/loss we simply deduct the total expenses from service revenue.