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.

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)

steve should create a type of business report called a business plan. the correct option among the options that are already given in the question is the last or the fourth option. this business report created by steve will actually influence the investors about investing their money in steve's business. this business report will have all the details about the business, the amount of investment required and the amount of expected profit.