1- If salaries and wages were to double, how much net income would the company report?

2- If the company paid $20,000 of its advertising expense during the current year, what amount is owed for advertising at the end of the year?

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Three individuals organized Pest Away Corporation on January 1 to provide insect extermination services. The company paid dividends of $10,000 during the year. At the end of the first year of operations, the following income statement was prepared: Revenues Service Revenue Sales Revenue PEST AWAY CORPORATION Income Statement For the Year Ended December 31 Total Revenues Expenses Supplies Expense Salaries and Wages Expense Advertising Expense office Expense Total Expenses Net Income $ 192,000 24,000 216,000 76,000 33,000 22,000 46,000 177,000 $ 39,000 Three individuals organized Pest Away Corporation on January 1 to provide insect extermination services. The company paid dividends of $10,000 during the year. At the end of the first year of operations, the following income statement was prepared: Revenues Service Revenue Sales Revenue PEST AWAY CORPORATION Income Statement For the Year Ended December 31 Total Revenues Expenses Supplies Expense Salaries and Wages Expense Advertising Expense office Expense Total Expenses Net Income $ 192,000 24,000 216,000 76,000 33,000 22,000 46,000 177,000 $ 39,000

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1 Ans If salaries and wages are doubl... View the full answer