Question

Below are the account balances for Huffman Corporation at the end of December. Accounts Balances Cash $ 4,200 Salaries expense 1,800 Retained earnings 1,600 Advertising expense 1,130 Equipment 9,200 Service revenue 9,900 Common stock 4,200 Accounts payable 1,280 Use only the appropriate accounts to prepare an income statement.

Answer 1

Answer:

Income Statement

9,900  Service revenue

1,800   Salaries expense

1,130    Advertising expense

6,970

Explanation: Only items that correspond to income statements are used, such as income that in this case are from services and costs and expenses such as salaries and advertising, for that reason not all items are used.  

Answer 2

Answer:

$6,970

Explanation:

Huffman Corporation Income Statement at the end of December

Revenue

Service Revenue $9,900

Expenses

Salaries expenses $1,800

Advertising expenses $1,130

Total expenses($1,800+$1,130) (2930)

Net income($9,900-$2,930) $6,970