Reference no: EM132872496
Question - Milo Inc. had the following account balances at December 31, 2021:
Account Name Amount
Dividends $2,750
Prepaid expenses 1,800
Interest expense 1,150
Website expense 800
Accounts receivable 31,325
Deferred revenue 1,500
Income tax expense 5,275
Collections from customers 44,375
Purchase of intangibles 1,310
Payments to suppliers 41,840
Car expense 2,125
Retained earnings (beginning of year) 10,235
Payment of dividends 2,750
Rent expense 2,400
Supplies expense 1,500
Cash (beginning of year) 37,625
Service revenue 33,150
Cash received from debt 15,000
Prepaid rent 1,200
Supplies 1,875
Business licence 60
Cash (end of year) 52,350
Income tax payable 1,200
Owner's capital 17,500
Website design 1,250
Entertainment expense 575
Contributions by owners 1,250
Accounts payable 27,850
Bank loan payable, due in 2025 15,000
Using the above information create the following: income statement, statement of retained earnings, balance sheet and the statement of cash flows. Then use the information to answer the following questions.
1. What is the correct title for this company's single step income statement
a) Milo Inc., Income Statement, December 31, 2021
b) Milo Inc., December 31, 2021, Income Statement
c) Milo Inc., Income Statement, Year ended December 31, 2021
d) December 31, 2021, Income Statement, Milo Inc.
e) Income Statement, Milo Inc., Year ended December 31, 2021
2. What is Total Operating Expenses on this company's single step income statement?
3. What is Profit before Income Tax (also called Income before Income Tax) on this company's single step income statement?
4. What is Profit (also called Net Income) on this company's single step income statement?