The following transactions apply to Artesia Co for 2012 its first year of operations and we had to do an income statement. These are the transactions:
1. Received $40000 from the issue of a short term not with 5% interest rate and a one year maturity. The not was issued on 4/1/2012.
2. Received $120000 cash plus applicable sales tax for performing services. Sales Tax was 6% which makes it $7200.
3. Paid $72000 cash for other expenses during the year.
4. Paid the sales tax due on $100000 (which would be $6000) of the service revenue for the year. Sales tax balance was not due until 2013.
5. Recognized accrued interest on 12/31/2012.

It tells me the net income on the side of $46500 for 2012, but somewhere I gained $100, because I keep coming up with $46600. My 2012 Income Statement looks like this:

Revenue = $120000
Operating Expenses = ($72000)
Interest Expense = ($1340)
Net Income is $46600

Can someone help me where this extra $100 came from? I've been working on this for the past couple of days going over my numbers over and over again. I couldn't sleep last night because of this extra money on the statement!

Thank you for the time!

from the information I would say you have the interest calculation incorrect it is approximately $1500

making your income statement
Revenue = $120000
Operating Expenses = ($72000)
Interest Expense = ($1500)
Net Income is $46500