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The following information relates to Sheridan Company for the year 2022.

Retained earnings, January 1, 2022 $40,320
Advertising expense $1,510
Dividends during 2022 4,200
Rent expense 8,740
Service revenue 52,500
Utilities expense 2,600
Salaries and wages expense 23,520
Other comprehensive income (net of tax) 340

Required:
a. After analyzing the data, compute net income.
b. Prepare a comprehensive income statement for the year ending December 31, 2022.

Respuesta :

Tundexi

Answer:

a. Computation of net income

Particulars                                      Amount

Service revenue                            $52,500

Less: Expenses

Salaries and wages expenses      ($23,520)

Utilities expense                             ($2,600)

Rent expense                                  ($8,740)

Advertising expense                       ($1,510)

Net Income                                      $16,130

b. Computation of comprehensive income statement

Particulars                                            Amount

Net Income                                           $16,130

Add: Other Comprehensive Income   $380    

Comprehensive Income                      $16,470

Note: Dividend will not be included as it forms part of Income statement

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