Question

Below are the account balances for Cowboy Law Firm at the end of December.Accounts BalancesCash $4,300Salaries expense 1,650Accounts payable 2,300Retained earnings 4,250Utilities expense 1,000Supplies 12,700Service revenue 8,200Common stock 4,900Required:Use only the appropriate accounts to prepare an income statement.COWBOY LAW FIRMIncome StatementExpenses: Total expenses Net income

Answer 1

Answer:

$5,550

Explanation:

Preparation of an Income statement

REVENUE :

Service revenue $8,200

Less EXPENSES:

Salaries expense $1,650

Utilities expense $1,000

Total Expenses($2,650)

($1,650+$1,000)

Net income $5,550

($8,200-$2,650)

Therefore the Net income amount for the income statement will be $5,550