Question

This information relates to Sheridan Company for the year 2022.

Retained earnings, January 1, 2022		$91,100
Advertising expense		2,450
Dividends		8,160
Rent expense		14,200
Service revenue		78,880
Utilities expense		3,260
Salaries and wages expense		40,800

Prepare an income statement for the year ending December 31, 2022. 

SHERIDAN COMPANY Income Statement

Answer 1

Answer -

SHERIDAN COMPANY

Income Statement

For the Year Ended December 31, 2022

	Explanation	Amount ($)
Revenues	-	-
Service Revenue	Given in question	78880
Expenses	-	-
Salaries and Wages Expense	Given in question	40800
Rent Expense	Given in question	14200
Utilities Expense	Given in question	3260
Advertising Expense	Given in question	2450
Total Expenses	$40800 + $14200 + $3260 + $2450	60710
Net Income/ (Loss)	$78880 - $60710	18170