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Riley, Incorporated reports the following amounts at the end of the year: Cash $ 57,200 Service revenue $ 97,900 Buildings 44,000 Salaries expense 61,800 Accounts payable 8,700 Equipment 70,000 Interest expense 3,500 Supplies 3,700 Advertising expense 10,800 Notes payable 45,000 In addition, the company had common stock of $68,000 at the beginning of the year and issued an additional $6,200 during the year. The company also had retained earnings of $27,200 at the beginning of the year and paid dividends of $2,000 during the year. Prepare the income statement, statement of stockholders' equity, and balance sheet. a. Income statement.

Respuesta :

Answer:

Explanation:

Before preparing the income statement, first, we have to compute the net income or net loss. So, the calculation is shown below:

In the simplest form, the net income = Total revenue - total expenses

= Service Revenue - interest expense - salaries expense - Advertising Expense

= $97,900 - $3,500 - $61,800 - $10,800

= $21,800

The preparation of the income statement, statement of stockholder's equity and the balance sheet are presented in the spreadsheet. Kindly find the attachment below:

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