LO 2, 3 Summary: Transaction Analysis C2-76. (Learning Objectives 2, 3: Analyze the impact of transactions on accounts; correct erroneous financial statements; decide whether to expand a business) Joe Ferritto opened an Italian restaurant. Business has been good, and Ferritto is considering expanding the restaurant. Ferritto, who knows little accounting, produced the following financial statements for Romano Castle, Inc., at December 31, 2021, the end of the first month of operations: A1 2 Sales revenue 3 Common stock 4 Total revenue 5 Romano Castle, Inc. Income Statement Month Ended December 31, 2021 6 Accounts payable 7 Advertising expense 8 Rent expense 9 Total expenses 10 Net income 11 A1 B $ 42,000 10,000 52,000 8,000 5,000 6,000 19,000 $ 33,000