Question

The following amounts were taken from the accounting records of Padget Home Services, Inc., as of December 31, 20Y7. Padget Home Services began its operations on January 1, 20Y7. Cash $ 60,000 Common stock 75,000 Dividends 15,000 Fees earned 620,000 Interest expense 4,800 Land 215,000 Miscellaneous expense 10,200 Notes payable 80,000 Rent expense 70,000 Salaries expense 272,000 Taxes expense 43,000 Utilities expense 85,000 After its second year of operations, the following amounts were taken from the accounting records of Padget Home Services, Inc., as of December 31, 20Y8. Cash ? Common stock $110,000 Dividends 50,000 Fees earned 886,000 Interest expense 7,200 Land 340,000 Miscellaneous expense 13,800 Notes payable 120,000 Rent expense 100,000 Salaries expense 380,000 Taxes expense 65,000 Utilities expense 120,000 Instructions: 1. Prepare an income statement for the year ending December 31, 20Y8.

Answer 1

S 886.000 Padget Home Services, Inc., Income Statement For the year Ending December 31, 2048 Revenue Fees Earned $ 886,000 Total Revenue Less: Expenses Interest expenses $ 7,200 Miscellenious Expenses S 13.800 Rent Expense $ 100.000 Salaries Expenses $ 380,000 Taxes Expenses $ 65,000 Utilities Expense $ 120.000 S 686,000 $ 200.000 Net Income