Question

This information relates to Sheridan Company for the year 2022.
Retained earnings, January 1, 2022 $91,100
Advertising expense 2,450
Dividends 8,160
Rent expense 14,200
Service revenue 78,880
Utilities expense 3,260
Salaries and wages expense 40,800
Prepare an income statement for the year ending December 31, 2022.

Answer 1

Answer and Explanation:

The preparation of the income statement is presented below:

Service revenue $78,880

Less: expenses

Advertising expense $2,450

Rent expense $14,200

Utilities expense $3,260

Salaries and wages expense $40,800

Net income $18,170

hence, the net income is $18,170

The same is to be considered