Consider the following account balances of Smiths Corp. at the end of the year:

Cash $12,000

Unearned Revenue $18,000

Interest Revenue $5,000

Supplies $3,500

Common Stock $25,000

Rent Expense $6,000

Accounts Receivable $11,700

Salaries Expense $7,500

1. How many of these accounts would be reported in the company's income statement?

Interest revenue, rent expense and salaries expense

Explanation:

In the income statement, the total revenues and the total expenses are recorded.

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

So, the categorization is shown below:

Interest revenue, rent expense and salaries expense