Question

Below are the account balances for a company at the end of December. Accounts Balances Cash $ 4,900 Salaries expense 1,950 Accounts payable 2,900 Retained earnings 3,950 Utilities expense 1,000 Supplies 13,300 Service revenue 8,800 Common stock 5,500 Required: Use only the appropriate accounts to prepare an income statement.

Answer 1

Answer:

See below

Explanation:

The preparation of the end December income statement for the company is seen below;

Service revenue

$8,800

Less:

Salaries expenses

($1,950)

Utilities expenses

($1,000)

Net income

$5,850