Question

The following information relates to Bonnie Billy Co. for the year 2022. Retained earnings, January 1, 2022 Dividends Service revenue Salaries and wages expense $67,000 6,000 65,500 29,000 Advertising expense Rent expense Utilities expense $6,500 9,500 1,400 (21) After analyzing the data, prepare an income statement for the year ending December 31, 2022. BONNIE BILLY CO. Income Statement

Answer 1

Income statements shows the revenue and expenses earned and incurred during the period which is used to calculate net income
Bonnie Billy Co
Income statement
For the year ended December 31, 2022
Revenue
Service revenue		$65,500
Expenses
Salaries and wages expense	$29,000
Rent expense	$9,500
Advertising expense	$6,500
Utilities expense	$1,400
Total expenses		$46,400
Net income		$19,100
Thus, net income is $19,100