Question

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

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

  Accounts Balances
  Cash $ 3,700
  Salaries expense 1,350
  Accounts payable 1,700
  Retained earnings 4,550
  Utilities expense 1,000
  Supplies 12,100
  Service revenue 7,600
  Common stock 4,300

  

Required:

Use only the appropriate accounts to prepare an income statement.

Accounts Balances
  Cash $ 3,700
  Salaries expense 1,350
  Accounts payable 1,700
  Retained earnings 4,550
  Utilities expense 1,000
  Supplies 12,100
  Service revenue 7,600
  Common stock 4,300

  

COWBOY LAW FIRM
Income Statement
Service revenue
Expenses:
Salaries expense
Total expenses

Use only the appropriate accounts to prepare an income statement.
  

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Answer #1

COWBOY LAW FIRM

Income statement

Revenue
Service revenue 7600
Expenses
Salaries expenses 1350
Utilities expense 1000
Total expense 2350
Net income 5250
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