Question

1.

These items are taken from the financial statements of Grouper Corporation for 2022.

Retained earnings (beginning of year)		$33,280
Utilities expense		2,110
Equipment		68,280
Accounts payable		22,570
Cash		15,070
Salaries and wages payable		5,840
Common stock		12,000
Dividends		12,000
Service revenue		69,290
Prepaid insurance		6,340
Maintenance and repairs expense		1,690
Depreciation expense		3,490
Accounts receivable		15,970
Insurance expense		2,310
Salaries and wages expense		38,290
Accumulated depreciation—equipment		22,570

(a1)

Prepare an income statement for the year ended December 31, 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

2.

You are provided with the following information for Ayayai Enterprises, effective as of its April 30, 2022, year-end.

Accounts payable		$844
Accounts receivable		910
Accumulated depreciation—equipment		670
Cash		1,370
Common stock		1,200
Cost of goods sold		1,070
Depreciation expense		325
Dividends		335
Equipment		2,520
Income tax expense		175
Income taxes payable		145
Insurance expense		220
Interest expense		410
Inventory		1,067
Land		3,200
Mortgage payable		3,600
Notes payable (due March 31, 2023)		161
Prepaid insurance		70
Retained earnings (beginning)		1,600
Salaries and wages expense		690
Salaries and wages payable		232
Sales revenue		5,200
Stock investments (short-term)		1,290

(a1)

Prepare an income statement for Ayayai Enterprises for the year ended April 30, 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer 1

1 (a1)
Income Statement For the Year Ended December 31, 2022
Revenues:
Service Revenue		$ 69,290
Expenses :
- Utilities Expense	$ 2,110
- Maintenance and Repairs Expense	$ 1,690
- Depreciation Expense	$ 3,490
- Insurance Expense	$ 2,310
- Salaries and Wages Expense	$ 38,290
Total Expenses		($ 47,890)
Net Income		$ 21,400

2 (a1)
Income Statement for Ayayai For the Year Ended April 30, 2022
Revenues:
Sales Revenue		$ 5,200
Expenses :
- Cost of goods sold	$ 1,070
- Depreciation Expense	$ 325
- Insurance Expense	$ 220
- Interest Expense	$ 410
- Salaries and Wages Expense	$ 690
- Income tax Expense	$ 175
Total Expenses		($2,890)
Net income		$ 2,310