the assets and liabilities of rockys day spa at december 31 and its expenses for the year are listed below…

the assets and liabilities of rockys day spa at december 31 and its expenses for the year are listed below. the capital of the owner was $68,000 at january 1. the owner invested an additional $10,000 during the year. net income for the year is $45,625.\naccounts amounts accounts amounts\naccounts payable $4,375 spa operating expense $23,760\naccounts receivable 8,490 office expense 2,470\ncash 13,880 spa supplies 9,230\nfees earned??? wages expense 26,580\nspa furniture and equipment 56,000 drawing 38,170\ncomputers 2,130\nrequired:\nprepare an income statement for the current year ended december 31. refer to the lists of accounts in the information given, labels, and amount descriptions for the exact wording of the answer choices for text entries. be sure to complete the statement heading. you will not need to enter colons (:) on the income statement.

the assets and liabilities of rockys day spa at december 31 and its expenses for the year are listed below. the capital of the owner was $68,000 at january 1. the owner invested an additional $10,000 during the year. net income for the year is $45,625.\naccounts amounts accounts amounts\naccounts payable $4,375 spa operating expense $23,760\naccounts receivable 8,490 office expense 2,470\ncash 13,880 spa supplies 9,230\nfees earned??? wages expense 26,580\nspa furniture and equipment 56,000 drawing 38,170\ncomputers 2,130\nrequired:\nprepare an income statement for the current year ended december 31. refer to the lists of accounts in the information given, labels, and amount descriptions for the exact wording of the answer choices for text entries. be sure to complete the statement heading. you will not need to enter colons (:) on the income statement.

Answer

Explanation:

Step1: Recall income - statement formula

Net Income = Fees Earned - Total Expenses. We need to find Fees Earned. Rearranging the formula gives Fees Earned=Net Income + Total Expenses.

Step2: Calculate total expenses

Total Expenses = Spa operating expense+Office expense+Spa supplies+Wages expense Total Expenses = 23760 + 2470+9230 + 26580=$62040.

Step3: Calculate fees earned

Fees Earned = Net Income+Total Expenses. Given Net Income = 45625 and Total Expenses = 62040. Fees Earned = 45625+62040 = $107665.

Answer:

Rocky's Day Spa
Income Statement For the Year Ended December 31
Fees Earned $107665
Expenses:
Spa operating expense $23760
Office expense $2470
Spa supplies $9230
Wages expense $26580
Total expenses $62040
Net Income $45625