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Prepare an income statement (LO1-3)

Below are the account balances for Cowboy Law Firm at the end of December.

Accounts Balances

Cash $ 5,400

Salaries expense 2,200

Accounts payable 3,400

Retained earnings 3,900

Utilities expense 1,200

Supplies 13,800

Service revenue 9,300

Common stock 6,000

Required:

Use only the appropriate accounts to prepare an income statement.

COWBOY LAW FIRM

Income Statement

For the Period Ended December 31

Expenses:

Total expenses

Respuesta :

abiolataiwo2015

Answer:

$5,900

Explanation:

Preparation of an Income statement

REVENUE :

Service revenue $9,300

Less EXPENSES:

Salaries expense $2,200

Utilities expense $1,200

Total Expenses($3,400)

($2,200+$1,200)

Net income $5,900

($9,300-$3,400)

Therefore the Net income amount for the income statement will be $5,900

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