Question

Below are the account balances for Cowboy Law Firm at the end of December.

Accounts Balances
Cash $5,000
Salaries expense 2,000
Accounts payable 3,000
Retained earnings 4,000
Utilities expense 1,100
Supplies 13,400
Service revenue 8,900
Common stock 5,600
Required:
Use only the appropriate accounts to prepare an income statement.

Answer 1

Cowboy Law Firm

Income statement for the year ended December.

$

Service revenue 8,900

Less Expenses :

Salaries expense (2,000)

Utilities expense (1,100)

Net Income / (Loss) 5,800

Step-by-step explanation:

Income statements shows Revenues earned and Expenses incurred at the end of the trading period.