### Financial Data for Armani CompanyUse the following financial information for problems 3 to 5 LO P2 (Algo):#### [The following information applies to the questions displayed below.]As of December 31 of the current year, Armani Company’s financial records show the following data:| Item | Amount ($) ||------------------------------------------------|------------|| **Cash** | 12,000 || **Accounts receivable** | 11,000 || **Supplies** | 8,000 || **Equipment** | 7,000 || **Accounts payable** | 15,000 || **Common stock** | 16,000 || **Retained earnings, Dec. 31, prior year** | 5,000 || **Retained earnings, Dec. 31, current year** | 7,000 || **Dividends** | 15,000 || **Consulting revenue** | 37,000 || **Rental revenue** | 15,000 || **Salaries expense** | 26,000 || **Rent expense** | 22,000 || **Selling and administrative expenses** | 10,000 |This financial data can be used to analyze the company's performance and financial health for educational purposes. Students can refer to these figures to solve related financial problems and tasks. ### Income Statement Preparation for Armani Company**Objective:**To prepare the income statement for Armani Company for the current year ended December 31.**Income Statement:**The income statement is a crucial financial document that provides a summary of a company's revenues and expenses over a specific period, typically a fiscal year. It helps to determine the company's financial performance, specifically its profitability.#### Armani Company**Income Statement for Current Year Ended December 31**| Description | Amount ($) ||--------------------------|----------------|| **Revenues** | || Total Revenues | 0 || **Expenses** | || Total Expenses | 0 |**Explanation of the Table:**1. **Revenues Section:** - This section lists all types of income earned by Armani Company during the year. Generally, it includes sales revenue, service revenue, interest income, etc. - The total revenue is the sum of all revenues.2. **Expenses Section:** - This section enumerates all operational and non-operational costs incurred by the company. It typically includes costs of goods sold, administrative expenses, salaries, rent, utilities, depreciation, interest expenses, etc. - The total expenses are the aggregation of all incurred expenses.3. **Net Income (Not Listed in Image but Typically Included):** - To calculate net income, subtract the total expenses from total revenues. - Net Income = Total Revenues - Total ExpensesThe provided image does not offer specific numerical data. Hence, the amounts for revenues and expenses are shown as 0, but in practice, these should reflect the actual values for the year.**Educational Note:**The income statement, also known as the profit and loss statement, is a vital tool for stakeholders, including management, investors, and creditors. They use it to gauge the company's financial health, operational efficiency, and profitability trends over time. Constructing an accurate income statement involves detailed accounting and financial analysis to ensure the figures represent the true financial status of the company.

Rental Revenue 26000 Consulting Revenue 37000 Total Revenue 63000 Salaries…

Use the following information for problems 3 to 5 LO P2 (Algo) [The following information applies to the questions displayed below.] As of December 31 of the current year, Armani Company's records show the following. Cash $12,000 11,000 Accounts receivable Supplies 8,000 Equipment 7,000 Accounts payable 15,000 Common stock 16,000 Retained earnings, Dec. 31, prior year Retained earnings, Dec. 31, current 5,000 7,000 year Dividends 15,000 Consulting revenue 37,000 Rental revenue 26,000 Salaries expense 22,000 Rent expense 14,000 Selling and administrative expenses 10,000

Use the following information for problems 3 to 5 LO P2 (Algo) [The following information applies to the questions displayed below.] As of December 31 of the current year, Armani Company's records show the following. Cash $12,000 11,000 Accounts receivable Supplies 8,000 Equipment 7,000 Accounts payable 15,000 Common stock 16,000 Retained earnings, Dec. 31, prior year Retained earnings, Dec. 31, current 5,000 7,000 year Dividends 15,000 Consulting revenue 37,000 Rental revenue 26,000 Salaries expense 22,000 Rent expense 14,000 Selling and administrative expenses 10,000

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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