Essay About Total Revenue And Net Income

Problems and Final Exam Review
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A100 Solutions to Chapter 7 problems and Final Exam Review
Chapter 7
Step 7 – Prepare Financial Statements
Bellas Beauty Salon
Income Statement
FYE 12/31
Revenue:
Service fee revenue
$ 23,400
Rental fee revenue
3,400
Total revenue
$ 26,800
Expenses:
Property tax expense
$ 4,350
Wages expense
3,400
Depreciation expense: building
2,220
Insurance expense
1,240
Interest expense
1,000
Shop supplies expense
Utilities expense
Advertising tax expense
Depreciation expense: shop equipment
Total expenses
_ 14,630
Net income before income tax
12,170
Income tax expense
1,800
Net income
$_10,370
Bellas Beauty Salon
Statement of Changes in Retained Earnings
FYE 12/31
Retained earnings, 1/1
$ 24,860
Net income
10,370
Subtotal
35,230
Deduct:
Dividends
________
Retained earnings, 12/31
$___35,230
Bellas Beauty Salon
Balance Sheet
12/31
Assets
Current assets:
Cash
$4,200
Rental fee receivable
Shop supplies
Prepaid insurance
Total current assets
$ 4,850
Property, Plant and Equipment
Shop equipment
$ 3,860
Less: Accumulated depreciation
1,120
$ 2,740
Building
57,500
Less: Accumulated depreciation
6,060
51,440
Land
55,000
Total property, plant and equipment
109,180
Total assets
$114,030
Liabilities & Stockholders Equity
Current liabilities:
Income tax payable
$ 1,800
Interest payable
1,000
Unearned rent
800