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Orange Ltd. had the following account balances at December 31, 2021: Account Name Amount Repair expense $1,375 Advertising expense 800 Prepaid expenses 1,200 Dividends 3,675

Orange Ltd. had the following account balances at December 31, 2021:

Account Name Amount
Repair expense $1,375
Advertising expense 800
Prepaid expenses 1,200
Dividends 3,675
Purchase of intangibles 900
Cash (end of year) 52,250
Deferred revenue 1,375
Owner's capital 24,000
Accounts payable 18,625
Prepaid insurance 1,800
Collections from customers 45,650
Insurance expense 2,300
Contributions by owners 15,000
Accounts receivable 22,075
Cash (beginning of year) 6,775
Retained earnings (beginning of year) 3,700
Interest expense 750
Business licence 60
Payment of dividends 3,675
Website design 840
Service revenue 17,450
Cash received from debt 25,000
Income tax expense 2,600
Supplies 1,125
Supplies expense 350
Payments to suppliers 35,600
Bank loan payable, due in 2025 25,000
Website expense 650
Income tax payable 1,700

Question 70

What is Profit before Income Tax (also called Income before Income Tax) on this company's single step income statement?

Question 71

What is Profit (also called Net Income) on this company's single step income statement?

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