Q1SE
Question
Dalton Hair Stylists’s adjusted trial balance follows. Prepare Dalton’s income statement for the year ended December 31, 2018. DALTON HAIR STYLISTS Adjusted Trial Balance December 31, 2018 Account Title Office Supplies Cash Debit Credit Accounts Receivable Equipment Accumulated Depreciation—Equipment Accounts Payable Interest Payable Notes Payable Common Stock Dividends Service Revenue Rent Expense Supplies Expense Depreciation Expense—Equipment Interest Expense Balance \( 1,300 \) 36,150 \( 36,150 400 \) 2,200 3,100 500 1,400 16,150 13,800 3,900 850 2,200 2,300 1,500 1,800 20,900 Total.
Step-by-Step Solution
VerifiedIncome statement is shown as follows:
DALTON HAIR STYLISTS | ||
Income Statement | ||
Year Ended December 31, 2018 | ||
Revenues |
|
|
Service Revenue |
| $13,800 |
Expenses |
|
|
Rent Expense | $3,900 |
|
Supplies Expense | 850 |
|
Depreciation Expense—Equipment | 2,200 |
|
Interest Expense | 2,300 |
|
Total Expenses |
| 9,250 |
Net Income |
| $4,550 |
When the total revenues are higher than the total expenses, then it results in the net income in the period.
Net income is calculated as follows: