Question

Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $4,000Salaries expense 1,500Accounts payable 2,000Retained earnings 4,400Utilities expense 1,000Supplies 12,400Service revenue 7,900Common stock 4,600 Use only the appropriate accounts to prepare an income statement.

Answer 1

Step-by-step explanation:

The preparation of the income statement is presented below:

Cowboy Law Firm

Income statement

At the end of December

Particulars Amount

Service revenue $7,900

Less: expenses

Salaries expense -$1,500

Utilities expense -$1,000

Net income $5,400