Question

The following are account balances for Sam Olin Co. for the year ended December 31, 2018: Fees earned $168,000 Cash $30,000 14,000 Selling expenses Accounts receivable 44,000 42,000 Sam, capital Equipment 36,000 Accounts payable 12,000 Interest Payable 3,000 Salaries & wages expense 40,000 Rent expense 51,000 Income taxes payable 5,000 Supplies 2,000 Notes payable Income taxes expense 20,000 18,000 Prepare an income statement for Sam Olin Co. For the Year Ended December 31, 2018. (Don

Answer 1

Ans. 1	SAM OLIN CO.
	Income Statement
	For the Year Ended December 31, 2018
	Particulars	Amount	Amount
	Revenues:
	Fees earned	$168,000
	Total revenue (a)		$168,000
	Less: Expenses:
	Salaries & wages expense	$40,000
	Selling expense	$44,000
	Rent expense	$51,000
	Income taxes expense	$18,000
	Total expenses (b)		$153,000
	Net Income (a - b)		$15,000
	*Net income is the excess amount of total revenues over the total amount of expenses.
	*Other items are related to Balance sheet.