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.

Question

Savion Byrd

Business

30 January, 16:46

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.

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Moshe Mullins · Answer 1

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