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21 August, 16:17

The Sky Blue Corporation has the following adjusted trial balance at December 31. Debit Credit Cash $ 1,340 Accounts Receivable 3,100 Prepaid Insurance 3,400 Notes Receivable (long-term) 4,100 Equipment 17,500 Accumulated Depreciation $ 4,800 Accounts Payable 6,520 Salaries and Wages Payable 1,550 Income Taxes Payable 4,000 Deferred Revenue 820 Common Stock 3,500 Retained Earnings 1,440 Dividends 410 Sales Revenue 51,930 Rent Revenue 410 Salaries and Wages Expense 23,800 Depreciation Expense 2,400 Utilities Expense 5,320 Insurance Expense 2,500 Rent Expense 7,100 Income Tax Expense 4,000 Total $ 74,970 $ 74,970 Required: Prepare an income statement for the year ended December 31. How much net income did the Sky Blue Corporation generate during the year

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  1. 21 August, 16:30
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    Net Income that Sky Blue Corporation generated during the year $ 7220

    Explanation:

    Sky Blue Corporation

    Income Statement

    For the year ended December 31

    Sales Revenue $51,930

    Less Expenses:

    Operating Expenses : $ 38,620

    Rent Expense 7,100

    Salaries and Wages Expense 23,800

    Depreciation Expense 2,400

    Utilities Expense 5,320

    Operating Income : $ 13,310

    Add Other Income : $ 410

    Rent Revenue 410

    Less Other Expenses : $ 6500

    Insurance Expense 2,500

    Income Tax Expense 4,000

    Net Income $ 7220

    We get the net income by subtracting the total expenses from the total revenues. This includes other income and other expenses.
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