Problem 2-2 (Part Level Submission) These items are taken from the financial sta

ID: 2340207 • Letter: P

Question

Problem 2-2 (Part Level Submission) These items are taken from the financial statements of Splish Brothers Inc. for 2017 Retained earnings (beginning of year) $32.720 2,120 67,720 21,240 11,510 6,450 12,000 12,000 69,480 6,950 1,680 3,350 14,640 2,450 38,480 19,010 Utilities expense Equipment Accounts payable Cash Salaries and wages payable Common stock Dividends Service revenue Prepaid insurance Maintenance and repairs expense Depreciation expense Accounts receivable Insurance expense Salaries and wages expense Accumulated depreciation-equipment Prepare an income statement for the year ended December 31, 2017. (Enter negative amounts using either a parentheses e.g. (45).) nogatve Reserved AD 2000-2018

Explanation / Answer

Requirement a1

SPLISH BROTHERS INC.

Income Statement

For the Year ended December 31 2017

Service Revenue

$ 69,480.00

Operating Expenses

Utilities Expenses

$ 2,120.00

maintenance and repairs expense

$ 1,680.00

Depreciation expense

$ 3,350.00

Insurance expense

$ 2,450.00

Salaries and wages expense

$38,480.00

Total Operating expenses

$ 48,080.00

Net operating income

$ 21,400.00