Carmen Camry operates a consulting firm called Help Today, which began operations on December 1. On December 31, the company's records show the following selected accounts and amounts for the month of December. Cash
Carmen Camry operates a consulting firm called Help Today, which began operations on December 1. On December 31, the company's records show the following selected accounts and amounts for the month of December. Cash
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![### Required Information
**[The following information applies to the questions displayed below.]**
Carmen Camry operates a consulting firm called Help Today, which began operations on December 1. On December 31, the company’s records show the following selected accounts and amounts for the month of December:
- **Cash**: $25,430
- **Accounts receivable**: $22,450
- **Office supplies**: $5,340
- **Office equipment**: $20,100
- **Land**: $44,080
- **Accounts payable**: $10,480
- **Common stock**: $102,800
- **Dividends**: $6,080
- **Consulting revenue**: $27,080
- **Rent expense**: $9,640
- **Salaries expense**: $5,680
- **Telephone expense**: $970
- **Miscellaneous expenses**: $590
### Task
Use the above information to prepare a December income statement for the business.
**Diagram: Help Today Income Statement**
Below the list of accounts, there is a partially completed table titled "HELP TODAY - Income Statement". The table is intended to be filled out as follows:
| **HELP TODAY** | **Income Statement** |
|----------------|----------------------|
| **Revenues** | |
| Consulting revenue | $27,080 |
| **Expenses** | |
| Rent expense | $9,640 |
| Salaries expense | $5,680 |
| Telephone expense | $970 |
| Miscellaneous expenses | $590 |
| Total Expenses | |
| **Net Income** | |
The diagram requires the completion of the total expenses and the calculation of the net income, which can be achieved by subtracting the total expenses from the consulting revenue.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F950ccb0b-88f0-424e-a789-46ed3bd2a086%2Fd3480027-1e75-48d3-8df4-44a537457acb%2Fony7lva_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Required Information
**[The following information applies to the questions displayed below.]**
Carmen Camry operates a consulting firm called Help Today, which began operations on December 1. On December 31, the company’s records show the following selected accounts and amounts for the month of December:
- **Cash**: $25,430
- **Accounts receivable**: $22,450
- **Office supplies**: $5,340
- **Office equipment**: $20,100
- **Land**: $44,080
- **Accounts payable**: $10,480
- **Common stock**: $102,800
- **Dividends**: $6,080
- **Consulting revenue**: $27,080
- **Rent expense**: $9,640
- **Salaries expense**: $5,680
- **Telephone expense**: $970
- **Miscellaneous expenses**: $590
### Task
Use the above information to prepare a December income statement for the business.
**Diagram: Help Today Income Statement**
Below the list of accounts, there is a partially completed table titled "HELP TODAY - Income Statement". The table is intended to be filled out as follows:
| **HELP TODAY** | **Income Statement** |
|----------------|----------------------|
| **Revenues** | |
| Consulting revenue | $27,080 |
| **Expenses** | |
| Rent expense | $9,640 |
| Salaries expense | $5,680 |
| Telephone expense | $970 |
| Miscellaneous expenses | $590 |
| Total Expenses | |
| **Net Income** | |
The diagram requires the completion of the total expenses and the calculation of the net income, which can be achieved by subtracting the total expenses from the consulting revenue.
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