Question

c. Income Statement, Statement of Equity, Balance Sheet, Statement of Cash Flow d. Statement of Cash Flows, Income Statement, Statement of Equity, Balance Sheet QUESTION 22 USE THIS INFORMATION TO ANSWER PARTS I, II, & III Advertising Expense $33,500 Service Revenue $127,600 Buildings $150,000 Interest Expense $ 3,500 Salaries Expense $ 65,000 Utilities Expense $ 15,500 Accounts Payable $ 6,400 Equipment $ 27,000 Cash $ 5,500 Notes Payable $30,000 The Company had Common Stock of $100,000 at the beginning of the Year An additional $ 11,000 of Common Stock was issued during the Year The Company also had Retained Earnings of $30,300 at the beginning of the Year Dividends of $5,200 were paid during the Year to the Common Stockholders PARTI: Determine Net Income for the Year O a. $127,600 b. $10,000 c. $117,600 O d. $30,300 QUESTION 23

Answer 1

Calculation of Net Income

Service revenue		$127600
Less: Expenses
Advertising expense	33500
Salaries expense	65000
Interest expense	3500
Utilities expense	15500
Total expense		-117500
Net income		$10100

In the options $10100 is not given and the answer closest to $10100 is $10000.

So, the answer is option B) $10000

Note:- For any problem regarding the answer please ask in the comment section.