simplex corporation provides the following information at the end of the year:\nsalaries payable to workers…

simplex corporation provides the following information at the end of the year:\nsalaries payable to workers at the end of the year\nadvertising expense for the year\nbuilding that has been purchased\nsupplies at the end of the year\nretained earnings at the end of the year\nutilities expense for the year\nnote payable to the bank\nservice revenue during the year\nsalaries expense for the year\naccounts payable to suppliers\ndividends paid to stockholders during the year\ncommon stock that has been issued, including $8,000 that was issued this year\ncash remaining\ninterest expense for the year\naccounts receivable from customers\n\nrequired:\nprepare the income statement for the year ended december 31.

simplex corporation provides the following information at the end of the year:\nsalaries payable to workers at the end of the year\nadvertising expense for the year\nbuilding that has been purchased\nsupplies at the end of the year\nretained earnings at the end of the year\nutilities expense for the year\nnote payable to the bank\nservice revenue during the year\nsalaries expense for the year\naccounts payable to suppliers\ndividends paid to stockholders during the year\ncommon stock that has been issued, including $8,000 that was issued this year\ncash remaining\ninterest expense for the year\naccounts receivable from customers\n\nrequired:\nprepare the income statement for the year ended december 31.

Answer

Explanation:

Step1: Identify revenue

Service revenue is $67,800.

Step2: Identify expense items

Salaries expense = $24,200, Advertising expense = $8,700, Utilities expense = $4,200, Interest expense = $1,800.

Step3: Calculate total expenses

Total expenses = $24,200 + $8,700 + $4,200 + $1,800 = $38,900.

Step4: Calculate net income

Net income = Service revenue - Total expenses = $67,800 - $38,900 = $28,900.

Answer:

SIMPLEX CORPORATION - Income Statement for the year ended December 31 Amount ($)
Service Revenue 67,800
Expenses:
Salaries Expense 24,200
Advertising Expense 8,700
Utilities Expense 4,200
Interest Expense 1,800
Total expenses 38,900
Net Income 28,900