Question

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 $ 25,360 dividends $ 6,000 accounts receivable 22,360 consulting revenue 27,000 office supplies 5,250 rent expense 9,550 office equipment 20,000 salaries expense 5,600 land 44,000 telephone expense 860 accounts payable 10,500 miscellaneous expenses 520 common stock 102,000 use the above information to prepare a december income statement for the business.

Explanation:

Step1: Identify revenue

The consulting revenue is the only revenue item, which is $27,000$.

Step2: Calculate total expenses

Sum up all expense - items: Rent expense ($9,550$)+Salaries expense ($5,600$)+Telephone expense ($860$)+Miscellaneous expenses ($520$) = $9550 + 5600+860 + 520=16530$.

Step3: Calculate net income

Net income = Revenue - Total expenses. So, net income = $27000−16530 = 10470$.

Answer:

HELP TODAY
For the month ended December 31
Revenue:
Consulting revenue	$27,000$
Expenses:
Rent expense	$9,550$
Salaries expense	$5,600$
Telephone expense	$860$
Miscellaneous expenses	$520$
Total expenses	$16,530$
Net income	$10,470$