Income statement preparation On December 31, 2015, Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she billed $363,000 for...


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Income statement preparation On December 31, 2015, Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she billed $363,000<br>for her accounting services. She had two employees, a bookkeeper and a clerical assistant. In addition to her monthly salary of $7,970, Ms. Chen paid annual salaries of $47,800 and $35,500 to the<br>bookkeeper and the clerical assistant, respectively. Employment taxes and benefit costs for Ms. Chen and her employees totaled $34,300 for the year. Expenses for office supplies, including postage,<br>totaled $10,800 for the year. In addition, Ms. Chen spent $16,900 during the year on tax-deductible travel and entertainment associated with client visits and new business development. Lease<br>payments for the office space rented (a tax-deductible expense) were $2,720 per month. Depreciation expense on the office furniture and fixtures was $15,700 for the year. During the year, Ms. Chen<br>paid interest of $14,500 on the $116,000 borrowed to start the business. She paid an average tax rate of 30% during 2015.<br>a. Prepare an income statement for Cathy Chen, CPA, for the year ended December 31, 2015.<br>b. Evaluate her 2015 financial performance.<br>a. Prepare an income statement for Cathy Chen, CPA, for the year ended December 31, 2015.<br>Complete the fragment of the income statement for Cathy Chen below: (Select the correct account from the drop-down menu and round to the nearest dollar.)<br>Cathy Chen, CPA<br>Income Statement<br>for the Year Ended December 31, 2015<br>Sales revenue<br>$<br>363,000<br>Complete the fragment of the income statement for Cathy Chen below: (Select the correct account from the drop-down menu and round to the nearest dollar.)<br>Less: Operating expenses<br>Salaries<br>2$<br>95640<br>Employment taxes and benefits<br>83300<br>Supplies<br>Travel and entertainment<br>Lease payment<br>Depreciation expense<br>Total operating expense<br>$<br>Operating profits (EBIT)<br>$<br>

Extracted text: Income statement preparation On December 31, 2015, Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she billed $363,000 for her accounting services. She had two employees, a bookkeeper and a clerical assistant. In addition to her monthly salary of $7,970, Ms. Chen paid annual salaries of $47,800 and $35,500 to the bookkeeper and the clerical assistant, respectively. Employment taxes and benefit costs for Ms. Chen and her employees totaled $34,300 for the year. Expenses for office supplies, including postage, totaled $10,800 for the year. In addition, Ms. Chen spent $16,900 during the year on tax-deductible travel and entertainment associated with client visits and new business development. Lease payments for the office space rented (a tax-deductible expense) were $2,720 per month. Depreciation expense on the office furniture and fixtures was $15,700 for the year. During the year, Ms. Chen paid interest of $14,500 on the $116,000 borrowed to start the business. She paid an average tax rate of 30% during 2015. a. Prepare an income statement for Cathy Chen, CPA, for the year ended December 31, 2015. b. Evaluate her 2015 financial performance. a. Prepare an income statement for Cathy Chen, CPA, for the year ended December 31, 2015. Complete the fragment of the income statement for Cathy Chen below: (Select the correct account from the drop-down menu and round to the nearest dollar.) Cathy Chen, CPA Income Statement for the Year Ended December 31, 2015 Sales revenue $ 363,000 Complete the fragment of the income statement for Cathy Chen below: (Select the correct account from the drop-down menu and round to the nearest dollar.) Less: Operating expenses Salaries 2$ 95640 Employment taxes and benefits 83300 Supplies Travel and entertainment Lease payment Depreciation expense Total operating expense $ Operating profits (EBIT) $
Jun 10, 2022
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