Question

Problem 1-4A Listed in alphabetical order, the following selected items (in thousands) were taken from Wildhorse Information Technology Company's December 31, 2017, financial statements: 1. Accounts payable $870 7. Rent expense 2 Accounts receivable 950 8. S. Wildhorse, capital, Jan. 1 3. Cash 3,800 9. S. Wildhorse, drawings 4. Consulting revenue 15,400 10. Salaries expense 5. Equipment 5,120 11. Utilities expense 6. Interest expense 710 $4,390 6,390 3,210 3,000 360 Your answer is correct.

calculate the company's profit or loss at the year end

Answer 1

WILDHORSE INFORMATION TECHNOLOGY COMPANY
Income Statement
At December 31, 2017
Revenues
Consulting revenue		15,400
Expenses:
Interest expense	710
Rent expense	4,390
Salaries expense	3,000
Utilities expense	360
Total expenses		-8,460
Net profit		$6,940

The company's profit or loss at the year end = $6,940.

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