M4-14 through M4-17 (Algo) Reporting an Income Statement, Reporting a Statement of Retained Earnings, Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5]Skip to question[The following information applies to the questions displayed below.] The Sky Blue Corporation has the following adjusted trial balance at December 31. DebitCreditCash$ 1,260 Accounts Receivable2,300 Prepaid Insurance2,600 Notes Receivable (long-term)3,300 Equipment13,500 Accumulated Depreciation $ 3,200Accounts Payable 5,720Salaries and Wages Payable 1,150Income Taxes Payable 3,200Deferred Revenue 660Common Stock 2,700Retained Earnings 1,120Dividends330 Sales Revenue 44,730Rent Revenue 330Salaries and Wages Expense22,200 Depreciation Expense1,600 Utilities Expense4,520 Insurance Expense1,700 Rent Expense6,300 Income Tax Expense3,200 Total$ 62,810$ 62,810M4-14 (Algo)Required:Prepare an income statement for the year ended December 31.How much net income did the Sky Blue Corporation generate during the year? Complete this question by entering your answers in the tabs below.Required 1Required 2How much net income did the Sky Blue Corporation generate during the year?Net Income Complete this question by entering your answers in the tabs below.Required 1Required 2Prepare an income statement for the year ended December 31.SKY BLUE CORPORATIONIncome StatementFor the Year Ended December 31

Sky Blue Corporation Income Statement for the period ended December 31 Amount Sales…

Answered: Debit Credit Cash $ 1,260 Accounts…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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M4-14 through M4-17 (Algo) Reporting an Income Statement, Reporting a Statement of Retained Earnings, Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5]

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[The following information applies to the questions displayed below.]

The Sky Blue Corporation has the following adjusted trial balance at December 31.

	Debit	Credit
Cash	$ 1,260
Accounts Receivable	2,300
Prepaid Insurance	2,600
Notes Receivable (long-term)	3,300
Equipment	13,500
Accumulated Depreciation		$ 3,200
Accounts Payable		5,720
Salaries and Wages Payable		1,150
Income Taxes Payable		3,200
Deferred Revenue		660
Common Stock		2,700
Retained Earnings		1,120
Dividends	330
Sales Revenue		44,730
Rent Revenue		330
Salaries and Wages Expense	22,200
Depreciation Expense	1,600
Utilities Expense	4,520
Insurance Expense	1,700
Rent Expense	6,300
Income Tax Expense	3,200
Total	$ 62,810	$ 62,810

M4-14 (Algo)

Required:

Prepare an income statement for the year ended December 31.

How much net income did the Sky Blue Corporation generate during the year?

Complete this question by entering your answers in the tabs below.
Required 1
Required 2
How much net income did the Sky Blue Corporation generate during the year?
Net Income

Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare an income statement for the year ended December 31.
SKY BLUE CORPORATION
Income Statement
For the Year Ended December 31

Expert Solution

Answer

Sky Blue Corporation
Income Statement for the period ended December 31
	Amount
Sales Revenue	$ 44,730
Rent Revenue	$ 330
Total Revenue (A)	$ 45,060

Salaries and wages expense	$ 22,200
Depreciation expense	$ 1,600
Utilities expense	$ 4,520
Insurance expense	$ 1,700
Rent expense	$ 6,300
Income tax expense	$ 3,200
Total Expenses (B)	$ 39,520

Net Income (A - B)	$ 5,540

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