The second picture came out upside down and I dont know how to fix it.
Requirement 1
Solution
Effect income statement |
|
Event #1 |
No |
Event #2 |
No |
Event #3 |
Yes |
Event #4 |
Yes |
Event #5 |
No |
Event #6 |
No |
Requirement 2
Income statement |
|
Revenues |
$ 59,000.00 |
Less: Expenses |
$ 43,000.00 |
Operating income |
$ 16,000.00 |
Requirement 3
Correct answer--- Cash
.
When revenue is collected in cash then retained earnings as well as cash balance increases. Cash is part of asset and cash is places at the left side of accounting equation.
The second picture came out upside down and I dont know how to fix it. ,...