Reference no: EM132595222

Question - Preparing Income Statements

Calculate the net profit or loss from the information provided on an income statement.

Consider the following information:

Rent Revenue: $5,000

Rent Receivable: $2,000

Interest Revenue: $2,000

Interest Receivable: $1,000

Rent Expense: $4,000

Insurance Expense: $1,200

Insurance Payable: $1,200

Salaries Expense: $3,000

Salaries Payable: $500

Which of the following states the amount of net profit or loss for this company?

a) Net Loss of $1,200

b) Net Profit of $1,200

c) Net Loss of $2,900

d) Net Profit of $100