Data for the unadjusted trial balance of Planet Beach Tanning Salon at December 31, 2007 follow.

Adjusting data for 2007 are:

a. Accrued service revenue, \(\$ 3,100\).

c. Accrued salary expense, \(\$ 1,400\).

b. Supplies used in operations, \(\$ 600\).

d. Depreciation expense, \(\$ 4,000\).

Lex Noonan, the owner, has received an offer to sell the company. He needs to know the net income for the year covered by these data.

Requirements 

Without opening accounts, making journal entries, or using a work sheet, give Noonan the requested information. Prepare an income statement, and show all computations.

Transcribed Image Text:

Cash Equipment Accumulated depreciation Accounts payable $ 3,000 Service revenue $93,600 66,200 Salary expense 21,800 6,100 Supplies expense 42,700 Depreciation expense