Home Realty, Incorporated, has been operating for three years and is owned by three investors. J. Doe owns 60 percent of the total outstanding stock of 9,000 shares and is the managing executive in charge. On December 31, the following financial items for the entire year were determined: sales revenue, $231,000; salaries and wages expense, $110,000; interest expense, $7,600; advertising expenses, $9,675; and income tax expense, $19,800. Also during the year, the company declared and paid the owners dividends amounting to $16,000. Prepare the company’s income statement.
Home Realty, Incorporated, has been operating for three years and is owned by three investors. J. Doe owns 60 percent of the total outstanding stock of 9,000 shares and is the managing executive in charge. On December 31, the following financial items for the entire year were determined: sales revenue, $231,000; salaries and wages expense, $110,000; interest expense, $7,600; advertising expenses, $9,675; and income tax expense, $19,800. Also during the year, the company declared and paid the owners dividends amounting to $16,000. Prepare the company’s income statement.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter2: Using Financial Statements And Budgets
Section: Chapter Questions
Problem 3LO
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Home Realty, Incorporated, has been operating for three years and is owned by three investors. J. Doe owns 60 percent of the total outstanding stock of 9,000 shares and is the managing executive in charge. On December 31, the following financial items for the entire year were determined: sales revenue, $231,000; salaries and wages expense, $110,000; interest expense, $7,600; advertising expenses, $9,675; and income tax expense, $19,800. Also during the year, the company declared and paid the owners dividends amounting to $16,000.
Prepare the company’s income statement.
Transcribed Image Text:HOME REALTY, INCORPORATED
Income Statement
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