NSYNC Realty, Incorporated, has been operating for three years and is owned by three investors. JC Chasez owns 60 percent of the total outstanding stock of 9,090 shares and is the managing executive in charge. On December 31, current year, the following financial items for the entire year were determined: commissions earned and collected in cash, $152,900, plus $17,600 uncollected; rental service fees earned and collected, $21,900; salaries expense paid, $62,660; commissions expense paid, $35,130; payroll taxes paid, $2,400; rent paid for January through November, $2,530 (not including December rent yet to be paid); utilities expense paid, $2,000; promotion and advertising paid, $7,550; income taxes paid, $23,300; and miscellaneous expenses paid, $450. There were no other unpaid expenses at December 31. Also during the year, the company paid the owners "out-of-profit" cash dividends amounting to $11,900. Complete the following income statement: Revenues: Commissions earned Rental service fees Total revenues Expenses: Salaries expense Commission expense Payroll tax expense Rent expense NSYNC REALTY, INCORPORATED Income Statement $ 170,500 21,900 $ 192,400 62,660 35,130 2,400 Utilities expense 2,000 Promotion and advertising expense 7,550 Miscellaneous expenses 450 Total expenses (excluding income taxes) 110,190 Pretax income Income tax expense Net income 23,300 $ 56,150
NSYNC Realty, Incorporated, has been operating for three years and is owned by three investors. JC Chasez owns 60 percent of the total outstanding stock of 9,090 shares and is the managing executive in charge. On December 31, current year, the following financial items for the entire year were determined: commissions earned and collected in cash, $152,900, plus $17,600 uncollected; rental service fees earned and collected, $21,900; salaries expense paid, $62,660; commissions expense paid, $35,130; payroll taxes paid, $2,400; rent paid for January through November, $2,530 (not including December rent yet to be paid); utilities expense paid, $2,000; promotion and advertising paid, $7,550; income taxes paid, $23,300; and miscellaneous expenses paid, $450. There were no other unpaid expenses at December 31. Also during the year, the company paid the owners "out-of-profit" cash dividends amounting to $11,900. Complete the following income statement: Revenues: Commissions earned Rental service fees Total revenues Expenses: Salaries expense Commission expense Payroll tax expense Rent expense NSYNC REALTY, INCORPORATED Income Statement $ 170,500 21,900 $ 192,400 62,660 35,130 2,400 Utilities expense 2,000 Promotion and advertising expense 7,550 Miscellaneous expenses 450 Total expenses (excluding income taxes) 110,190 Pretax income Income tax expense Net income 23,300 $ 56,150
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:NSYNC Realty, Incorporated, has been operating for three years and is owned by three investors. JC Chasez owns 60 percent of the
total outstanding stock of 9,090 shares and is the managing executive in charge. On December 31, current year, the following financial
items for the entire year were determined: commissions earned and collected in cash, $152,900, plus $17,600 uncollected; rental
service fees earned and collected, $21,900; salaries expense paid, $62,660; commissions expense paid, $35,130; payroll taxes paid,
$2,400; rent paid for January through November, $2,530 (not including December rent yet to be paid); utilities expense paid, $2,000;
promotion and advertising paid, $7,550; income taxes paid, $23,300; and miscellaneous expenses paid, $450. There were no other
unpaid expenses at December 31. Also during the year, the company paid the owners “out-of-profit” cash dividends amounting to
$11,900. Complete the following income statement:
Revenues:
Commissions earned
Rental service fees
Total revenues
Expenses:
Salaries expense
Commission expense
Payroll tax expense
Rent expense
NSYNC REALTY, INCORPORATED
Income Statement
$
170,500
21,900
$
192,400
62,660
35,130
2,400
Utilities expense
2,000
Promotion and advertising expense
7,550
Miscellaneous expenses
450
Total expenses (excluding income taxes)
110,190
Pretax income
Income tax expense
Net income
23,300
$
56,150
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