Question

The adjusted trial balance of Parsons Company at December 31, 2014, includes the following accounts:

Answer 1

Answer:

Income statement of  Parsons Company for the period ended December 31, 2014

                                                                   Amount in $        Amount in $

Service Revenue                                                                       37,000

Operating expense;

Salaries and Wages Expense                      16,000

Insurance Expense                                        2,000

Rent Expense                                                 4,000

Supplies Expense                                           1,500

Depreciation Expense                                   1,300

Total expense                                                                           (24,800)

Net income/(loss)                                                                       12,800  

Explanation:

The income statement shows the income and expenses of a business. Owner's capital and drawings are elements of the business balance sheet. Other items given are elements of revenue and cost.