The assets, liabilities, owner’s equity, revenue, and expenses of Philpott Company, a proprietorship, have the following final balances at December 31, 2023, the end of its first year of business. To start the business, Brian Philpott invested $90,000.

Required

Prepare the income statement of Philpott Company for the year ended December 31, 2023. What is Philpott Company’s net income or net loss for 2023?

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Note Payable......... Utilities Expense.... Accounts Payable..... B. Philpott, Capital. Service Revenue. Accounts Receivable. Supplies Expense....... Equipment...... $50,000 Office Furniture.. 18,000 Rent Expense.. 12,000 Cash............ 90,000 Office Supplies.......... 610,000 Salaries Expense. 35,000 Salaries Payable.. 30,000 Research Expense. 100,000 $ 50,000 48,000 15,000 14,000 430,000 5,000 27,000