Question

The Sky Blue Corporation has the following adjusted trial balance at December 31.

	Debit			Credit
Cash	$	1,270
Accounts Receivable		2,400
Prepaid Insurance		2,700
Notes  Receivable (long-term)		3,400
Equipment		12,400
Accumulated Depreciation				$	3,000
Accounts Payable					5,620
Salaries and Wages Payable					1,100
Income Taxes Payable					3,300
Unearned Revenue					640
Common Stock					2,800
Retained Earnings					1,100
Dividends		340
Sales Revenue					44,030
Rent Revenue					340
Salaries and Wages Expense		22,000
Depreciation Expense		1,500
Utilities Expense		4,620
Insurance Expense		1,600
Rent Expense		6,400
Income Tax Expense		3,300
Total	$	61,930		$	61,930

1.	Prepare an income statement for the year ended December 31.

    

2.	How much net income did the Sky Blue Corporation generate during the year?
	Net Income?

      

Answer 1

1.

Sky Blue Corporation
Income Statement
For the year ended December 31
	$	$
Revenue:
Sales revenue	44,030.00
Rent revenue	340.00
Total Revenue		44,370.00
Less Expenses:
Salaries and Wages expense	22,000.00
Depreciation expense	1,500.00
Utilities expense	4,620.00
Insurance Expense	1,600.00
Rent Expense	6,400.00
Income Tax Expense	3,300.00
Total Expenses		39,420.00
Net Income (Loss)		4,950.00

2. Net income which is Sky Blue Corporation generate during the year = $4,950