FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
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 |
|
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
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Step 1
Net Income of the business means income of the business after deducting all the expenses.
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