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

Required: Use only the appropriate accounts to prepare an income statement.

Question

Savanna Hubbard

Business

4 August, 19:24

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

Required: Use only the appropriate accounts to prepare an income statement.

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Powers · Answer 1

The preparation of the end December Income statement for Cowboy Law Firm is presented below:

Cowboy Law Firm

Income statement

Revenue

Service Revenue $7,900

Total revenues $7,900 (A)

Less: Expenses

Salaries expense $1,500

Utilities expense $1,000

Total expenses $2,500 (B)

Net income $5,400 (A - B)