Question

The assets and liabilities of Post Rose, Inc., as of December 31, 2016, and revenues and expenses for the year ended on that date follow: Requirement 1. Prepare the income statement of Post Rose, Inc. for the year ended December 31, 2016. Let's begin the heading and then complete the rest of the statement. (If a box is not used in the financial statements leave the box empty; do not select a label or enter a zero.) Equipment,"$113,000",Land,"$22,000" ,Interest expense,"10,700",Note payable,"99,500" ,Interest payable,"2,800",Property tax expense,"7,700" ,Accounts payable,"26,000",Rent expense,"41,400" ,Salary expense,"108,500",Accounts receivable,"85,100" ,Building,"402,000",Service revenue,"455,600" ,Cash,"46,000",Supplies,"6,300" ,Common stock,"5,000",Utilities expense,"8,500" Beginning retained earnings was $364,300, and dividends totaled $ 102,000 for the year.

Answer 1

• All working forms part of the answer
• Only Income Statement is asked in the question.
• Only Temporary accounts (revenues and expenses) will be used for preparing Income Statement.
• Income Statement for the year ended Dec 31, 2016

Revenues:
Service Revenue	$              4,55,600.00
Expenses:
Interest expense	$                 10,700.00
Property Tax Expense	$                    7,700.00
Rent Expense	$                 41,400.00
Salary expense	$              1,08,500.00
Utilities expense	$                    8,500.00
Total expense	$              1,76,800.00
Net Income	$              2,78,800.00