The following items are taken from the financial statements of the Postal Servic
ID: 2499932 • Letter: T
Question
The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation – equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What is the company’s net income for the year ending December 31, 2015? $133,000 $28,000 $12,000 $42,000
Explanation / Answer
Answer:
Particulars Amount ($) Net Revenue 133000 Less: Expenses: Supplies Expenses 6000 Advertising Expenses 21000 Insurance Expense 3000 Rent Expense 17000 Salaries & Wages Expense 32000 Depreciation Expense 12000 Net Income 42000Related Questions
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