Question

Required Information Reporting Amounts on the Four Basic Financial Statements and Evaluating Financial Statements [LO 1-2, LO 1-3] [The following information applies to the questions displayed below.] The following information for the year ended December 31, 2016, was reported by Nice Bite, Inc. $ 45,000 22,890 103,500 102,800 189,500 Accounts Payable Accounts Receivable Cash (balance on January 1, 2016) Cash (balance on December 31, 2016) Common Stock Dividends Equipment Income Tax Expense Interest Expense Inventory Notes Payable Prepaid Rent Office Expense Retained Earnings (beginning) Salaries and Wages Expense Service Revenue Utilities Expense Salaries and Wages Payable 136,700 19.199 29, see 17,200 23.600 7,000 14,300 6,309 35,700 137.899 25,190 8,000 Other cash flow information: Cash from issuing common stock Cash paid to reacquire common stock Cash paid for income taxes Cash paid to purchase long-term assets Cash paid to suppliers and employees Cash received from customers $ 21,000 23.599 11.eae 41.ee 83,299 137,90 PA1-3 Part 1 Required: 1. Prepare an income statement for 2016.

Answer 1

Solution:

Nice Bite, Inc.
Income statement
For year ended December 31, 2016
Revenue
Service Revenue	$    137,800
Total Revenue (A)	$    137,800
Operating Expenses
Utilities Expense	$      25,100
Salaries and Wages Expense	$      35,700
Office Expense	$      14,300
Interest Expense	$      29,500
Income Tax Expense	$      10,100
Total Operating Expense (B)	$    114,700
Non Operating(or) Other	$                 -
Net Income (A-B)		$      23,100

Notes:

1) Other Information provided in the question are relating to assets and liabilities and those things does not effects income statement.

2) No information is provided in relating to what type of income statement is needed. So, single step income statement is provided in the answer.