Question

Required information As of December 31, 2019, Armani Company's financial records show the following items and amounts. 14.10 Cash Accounts receivable Supplies Equipment Accounts payable Common stock Retained earninge, Dec. 31, 2018 Retained earnings, Dec. 31, 2019 Dividends Consulting revenue Rental revenue Salarios expense Rent expense Selling and administrative expensos $10,900 9.900 6,900 5,900 12,800 14,900 3.900 5.900 13,900 34,800 23,800 20,900 12.900 8,900

Answer 1

Income statement is a financial statement that records revenue and expenses. It helps in analyzing the financial situation of the company.Income statement is helpful to investors, managements, creditors etc.

Armani Company income statement for the year ended 31 December 2019

Revenues
Consulting revenue	$34,800
Rental revenue	$23,800
Total revenue		$58,600(34,800+23,800)
expenses
Salaries expense	$20,900
Rent expense	$12,900
selling and administrative expense	$8,900
Total expenses		$42,700($20,900+$12,900+$8,900)
Net income		$15,900($58,600-$42,700)