E1-10 Analyzing and Interpreting an Income Statement (LO 1-2, LO 1-3) Three individuals organized Pest Away Corporation on January 1 to provide insect extermination services. The company paid dividends of $10,100 during the year. At the end of the first year of operations, the following income statement was prepared: PEST ANAY CORPORATION Income Statement For the Year Ended December 31 Revenues Service Revenue $194,000 Sales Revenue 25,000 Total Revenues 219,000 Expenses Supplies Expense 76,500 Salaries and Wages Expense 34, eee Advertising Expense 22,100 Office Expense 46, see Total Expenses 179,100 Net Income $ 39,900 Required: 1. Did the company generate more revenue from selling goods or providing services to customers? 2. If salaries and wages were to double, how much net income would the company report? 3-a. If the company paid $20,200 of its advertising expense during the current year, what amount is owed for advertising at the end of the year? 3-b. In what account would the amount still owing be reported? 4. Would the $10,100 of dividends be reported on the balance sheet or statement of retained earnings? Complete this question by entering your answers in the tabs below. Rea Ren2 Reg 3B Reg 4 Net Income $ 39,900 Required: 1. Did the company generate more revenue from selling goods or providing services to customers? 2. If salaries and wages were to double, how much net income would the company report? 3-a. If the company paid $20,200 of its advertising expense during the current year, what amount is owed for advertising at the end of the year? 3-b. In what account would the amount still owing be reported? 4. Would the $10,100 of dividends be reported on the balance sheet or statement of retained earnings? Complete this question by entering your answers in the tabs below. Regi Req2 Reg 3A Reg 38 Reg 4 Did the company generate more revenue from selling goods or providing services to customers? Selling goods Providing services to customers Required: 1. Did the company generate more revenue from selling goods or providing services to customers? 2. If salaries and wages were to double, how much net income would the company report? 3-a. If the company paid $20,200 of its advertising expense during the current year what amount is owed for advertising at the end of the year? 3-b. In what account would the amount still owing be reported? 4. Would the $10,100 of dividends be reported on the balance sheet or statement of retained earnings? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 4 Req 3B If salaries and wages were to double, how much net income would the company report? Net Income Required: 1. Did the company generate more revenue from selling goods or providing services to customers? 2. If salaries and wages were to double, how much net income would the company report? 3-a. If the company paid $20,200 of its advertising expense during the current year, what amount is owed for advertising at the end of the year? 3-b. In what account would the amount still owing be reported? 4. Would the $10,100 of dividends be reported on the balance sheet or statement of retained earnings? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 2A Req 38 Reg 4 If the company paid $20,200 of its advertising expense during the current year, what amount is owed for advertising at the end of the year? Amount Onod Required: 1. Did the company generate more revenue from selling goods or providing services to customers? 2. If salaries and wages were to double, how much net income would the company report? 3-a. If the company paid $20,200 of its advertising expense during the current year, what amount is owed for advertising at the end of the year? 3-b. In what account would the amount still owing be reported? 4. Would the $10,100 of dividends be reported on the balance sheet or statement of retained earnings? Complete this question by entering your answers in the tabs below. Reg 1 Req2 Reg 3A Req 3B Reg 4 In what account would the amount still owing be reported? Accounts Payable Accounts Receivable Advertisement Outstanding Expense Req 3A Req 4 > Required: 1. Did the company generate more revenue from selling goods or providing services to customers? 2. If salaries and wages were to double, how much net income would the company report? 3-a. If the company paid $20.200 of its advertising expense during the current year, what amount is owed for advertising at the end of the year? 3-b. In what account would the amount still owing be reported? 4. Would the $10,100 of dividends be reported on the balance sheet or statement of retained earnings? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req Reg 3B Reg 4 Would the $10,100 of dividends be reported on the balance sheet or statement of retained earnings? Balance Sheet Statement of Retained Earnings