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Peter is head of accounting at the paper company that he works at and recorded the following statements: Service Revenue: $20,000 Cash: $2,000 Accounts Receivable: $3,000 Office Supplies: $1,000 Salaries Payable: $5,000 Wages Expense: $15,000 Rent Expense: $2,000 Using this data, determine the net profit or loss for Peter's paper company.

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theasianinny3

Answer:

There will net loss of $3000

Step-by-step explanation:

Service Revenue = $20000 is the income

To Net Income we have to subtract Total Revenue - Total cost

Total Revenue - $20000

Now total cost will be Cost of Office Supplies + Cost of Salaries +cost of Wages + Cost of Rent

Salaries are payable but still the expenses is accrued and so it will be included in calculation of net income.

Also Cash , Account receivable are part of balancesheet and are not consider for calculation of net income

So Total Expenses wiill be $1000 +$5000+$ $15000 +$2000 = $23000

As income is more than expenses There will net loss of ($20000-$23000) =($3000)

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