se Chapter 1 Saved Hel E1-8 (Static) Analyzing Revenues and Expenses and completing an income Statement 101-1 Neighborhood Realty, Incorporated, has been operating for three years and is owned by three investors. S. Bhojraj owns 60 percent of the total outstanding stock of 9,000 shares and is the managing executive in charge. On December 31, current year, the following financial items for the entire year were determined: commissions earned and collected in cash, $150,900, plus $16,800 uncollected: rental service fees earned and collected, $20,000; salaries expense paid. $62,740; commissions expense pald, $35,330: payroll taxes pald, $2,500; rent paid for January through November. $2.475 (not including December rent yet to be paid), utilities expense paid, $1,600: promotion and advertising paid $7750; income taxes paid, $24.400; and miscellaneous expenses paid, $500. There were no other unpaid expenses at December 31. Also during the year, the company paid the owners out-of-profit" cash dividends amounting to $12,000. Complete the following income statement: NEIGHBORHOOD REALTY, INCORPORATED Income Statement 5 0 Revenues Commissions earned Rental service fees Total revenues Expenses Salaries expense Commission expense Payroll tax expenso Rent expense Utilities expense Promotion and advertising expenso Miscellaneous expenses Total expenses (excluding income taxes) Protax income Income tax expenso Net Income 0 S 50,180