E1-8 (Algo) Analyzing Revenues and Expenses and Completing an Income Statement L01-1 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 9,030 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, $152,200, plus $17.200 uncollected; rental service fees earned and collected, $20,200, salaries expense paid $62,710, commissions expense paid $35,320; payroll taxes paid $2,300; rent paid for January through November, $2,508 (not including December rent yet to be paid); utilities expense paid. $1,500; promotion and advertising paid, $7740; income taxes paid, $23,800; and miscellaneous expenses pald, $490. 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 $11,600. Complete the following income statement: $ 189,600 NEIGHBORHOOD REALTY, INCORPORATED Income Statement For the Year Ended December 31, Current Year Revenues: Commissions earned $ 169,400 Rental service fees 20,200 Total revenues Expenses: Salaries expense 62,710 Commission expense 35,320 Payroll tax expense 2,300 Ront expenso 2,508 Utilities expense 1,500 Promotion and advertising expense 7,740 Miscellaneous expenses 490 Total expenses (excluding income taxes) Pretax income Income tax exponto Not income 112,568 $ 23,800 53,004