Analyzing Revenues and Expenses and Completing an Income Statement Home Realty Incorporated has been operating for three years and is owned by three investors. J. Doe owns 60 percent of the 9,000 shares that are outstanding and is the managing executive in charge. On December 31, 2011, the following financial items for the entire year were determined: commissions earned and collected in cash, \(\$ 150,000\); rental service fees earned and collected, \(\$ 15,000\); expenses paid included salaries, \(\$ 62,000\); commissions, \(\$ 35,000\); payroll taxes, \(\$ 2,500\); rent, \(\$ 2,200\); utilities, \(\$ 1,600\); promotion and advertising, \(\$ 8,000\); income taxes, \(\$ 18,500\); and miscellaneous expenses, \(\$ 500\). At December 31, there were \(\$ 16,000\) of commissions earned but not collected, and the rent for December (\$200) was not paid. Complete the following income statement:

Transcribed Image Text:

Revenues Commissions Rental service fees Total revenues Expenses Salaries Commission Payroll tax Rent Utilities Promotion and advertising Miscellaneous Total expenses (excluding income taxes) Profit hefore income taxes Income tax expense Profit for the period $ S S