2 Preparing Income Statements

Calculate the net profit or loss fromthe information provided on anincome statement.

Consider the following information:

Rent Revenue: $5,000

Rent Receivable: $2,000

Interest Revenue: $2,000

Interest Receivable: $1,000

Rent Expense: $4,000

Insurance Expense: $1,200

Insurance Payable: $1,200

Salaries Expense: $3,000

Salaries Payable: $500

Which of the following states the amount of net profit or loss for this company?

• a.)
• Net Loss of $1,200
• b.)
• Net Profit of $1,200
• c.)
• Net Loss of $2,900
• d.)
• Net Profit of $100