Compute the net income that would appear in the income statement of Johnson Service Company for the year ended December 31, 2019.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Compute the net income that would appear in the income statement of Johnson Service Company for the year ended December 31, 2019. Select the relevant accounts for this statement from the list that follows:

 

Accounts payable

$19,000

Notes payable

$85,000

Accounts receivable

12,000

Gas and oil expense

4,000

Prepaid expenses

11,000

Insurance expense

23,000

Building

180,000

Salary expense

53,000

Cash

10,000

Notes Payable

1,000

Unearned service revenue

20,000

Service Revenue

150,000

Rent expense

9,000

Supplies expense

3,000

Land

65,000

 

 

 

 

Group of answer choices
$106,000
$117,000
$92,000
$97,000
Expert Solution
Step 1

Net Income of the business means income of the business after deducting all the expenses. 

 

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