C2-74. (Learning Objective 3: Analyze the impact of transactions on accounts; correct erroneous financial statements; decide whether to expand a business) Joe Ferritto opened an Italian restaurant. Business has been good, and Ferritto is considering expand- ing the restaurant. Ferritto, who knows little accounting, produced the following financial statements for Romano Castle, Inc., at December 31, 2018, the end of the first month of operations: 1 A1 2 Sales revenue 3 Common stock 4 5 Total revenue 6 Accounts payable 7 Advertising expense 8 Rent expense 9 10 11 Total expenses Net income Romano Castle, Inc. Income Statement Month Ended December 31, 2018 $ 42,000 10,000 52,000 8,000 5,000 6,000 19,000 S 33,000