Question

The following information relates to Bramble Corp. for the year 2022.

Retained earnings, January 1, 2022 $47,040
Advertising expense $1,760
Dividends during 2022 4,900
Rent expense 10,190
Service revenue 61,250
Utilities expense 3,040
Salaries and wages expense 27,440
Other comprehensive income (net of tax) 390

Compute the net income.

Answer 1

Answer:

$18,810

Explanation:

The computation of the net income is shown below:

Net income = Service revenue - advertising expenses - rent expenses - utilities expense - Salaries and wages expense

= $61,250 - $1,760 - $10,190 - $3,050 - $27,440

= $18,810

We simply deduct the all expenses incurred from the service revenue so that the net income could be come