Question

4. Below are the account balances for Huffman Corporation at the end of December. Use only the appropriate accounts to prepare an income statement. (10) Accounts Balances Cash $ 5,200 Salaries expense 2,300 Retained earnings 2,500 Advertising expense 1,200 Equipment 12,400 Service revenue 9,400 Common stock 8,000 Accounts payable 2,200

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

Answer 2 Part 4) 9,400 Huffman Corporation Income Statement For the period ended december 7 Particulars Amount 8 Service revenue $ 9 10 Less expenses 11 Salaries expense 12 Advertising expense 13 14 Net Income 15 2,300 1,200 $ 5,900

Part 5) Credit Date May 1. 2019 Debit 100000 Account Title Note receivable Cash (To record cash given for note receivable) 100000 4000 December 31. 20 Interest receivable (1000000*6%*8/2) Interest revenue (To record interest revenue) 4000 May 1. 2020 106000 4000 Cash Interest receivable Note receivable Interest revenue (100000*6%*4/12) (to record cash collection and interest income on note) 10000 2000