Question

S 240 Accounts receivable 000 Sres Payable 840 Common siock ($1 par 1,500 Addtional pald-n captal Office equpment 2.100 a Reoeived $10,100 cesh for consulting services rendered b Issued 10,060 ditional shares of common stock at a markat price of $123 per share e Purchssed $700 of equipment, paying 25 percent in cash and owing the rest on a shat-erm note. d Reoeived 3920 from clents for consuiting services to be performed in the next year. e Bought $530 of supplies on account Incurred and paid $1,890 in usities for the current year Consuted far dients in Pe curront year for fses lonaing $1,000, due from dlents in the next year Reoeived $3.580 fhom clents paying on their accounts Incuned $6,270 in salaries in the current year, paying $5.390 and owing the rest (to be paid next year) į. Purtased $1,200 in sowem inveem and tw. S830 reumre overage begrring in the next f scal year. Heoeived $13 in interest revesue earnedin the current year on shorl-tem investments Required Prepare in good o an income lement for the current year ended December 31. gnore income taxes)(Enter your answer lin thousands, not in dollars

Answer 1

	Conover Inc.
	Income Statement
	For the Year Ended December 31st
	Operating Revenue
	Consulting fees revenue		$ 10,100.00
	Total Operating Revenue		$ 10,100.00
	Operating Expenses
*	Salaries Expenses	$ 6,270.00
	Utilites Expenses	$ 1,890.00
	Total operating Expenses		$   8,160.00
	Operating Income		$   1,940.00
	Other Item
	Interest Revenue		$         13.00
	Net Income		$   1,953.00
*	Salaries Expense includes salaries paid + salaries outstanding (As per accrual principle)
	Salaries Paid	5390
	Salaries Outstanding	880