Analyzing Revenues and Expenses and Completing an Income StatementNeighborhood Realty. Inc...

Analyzing Revenues and Expenses and Completing an Income Statement

Neighborhood Realty. Incorporated, has been operating for three years and is owned by three investors. S. Bhojraj owns 60 percent of the total outstanding stock of 9.000 shares and is the managing executive in charge. On December 31, 2012, the following financial items for the entire year were determined: commissions earned and collected in cash, $150,900, plus $16,800 uncollected; rental service fees earned and collected, $20,000; salaries expense paid, $62,740; commissions expense paid, $35,330; payroll taxes paid, $2,500; rent paid, $2,475 (not including December rent yet to be paid); utilities expense paid, $1,600; promotion and advertising paid, $7,750; income taxes paid, $24,400; and miscellaneous expenses paid. $500. There were no other unpaid expenses at December 31. Also during the year, the company paid the owners "out-of-profit" cash dividends amounting to $12,000. Complete the following income statement: