MIM

Financial Accounting Online Pre-course

Answers to Problems (Session 1)

Problem 1

Req. 1

|Kellogg Services, Inc. |
|Income Statement |
|Year Ended December 31, 20X7 |
|Revenue | | |
| Service revenue………………. | |$115,000 |
|Expenses | | |
| Salary expense………………... |$34,000 | |
| Rent expense………………….. |14,000 | |
| Interest expense………………. |4,000 | |
| Utilities expense………………. |3,000 | |
| Property tax expense………… | 2,000 | |
| Total expenses………………… | | 57,000 |
|Net income………………………... | |$ 58,000 |

Req. 2

|Kellogg Services, Inc.