Question

Ayayal Corporation began operations on January 1, 2022. The following information is available for Ayayai Corporation on December 31, 2022. Accounts payable Accounts receivable Advertising expense Cash Common shares (Dec. 31) Dividends declared Equipment Income tax expense $4,000 2,400 1,600 2,480 12,000 2,000 22,240 1,440 Bank loan payable Rent expense Retained earnings (Dec. 31) Salaries expense Service revenue Supplies Supplies [xpense $5,600 1,920 ? 4,640 20.000 1,520 1,360 al

Answer 1

Less Income statement Revenues Service revenue $ 20,000.00 Supplies $ 1,520.00 Expenses: Advertising expense $1,600.00 Rent expense $1,920.00 Salaries $ 4,640.00 Supplies expense $ 1,360.00 $ 9,520.00 Income before tax $ 12,000.00 Income tax expense $ 1,440.00 Net Income $ 10,560.00 Less AYAYAI CORPORATION Statement of changes in equity Common shares Retained earnings Total equity Balance as at Jan 1 2022 $ $ $ Issue of share capital $ 12,000.00 $ $ 12,000.00 Net income for year ş $ 10,560.00 $ 10,560.00 Dividend declared $ $ -2,000.00 $ -2,000.00 Balance as at Dec 31 2022 $ 12,000.00 $ 8,560.00 $20,560.00