Preparing an income statement [10-15 min]Refer to the data in Short ExerciseRequirement1....

Preparing an income statement [10-15 min]

Refer to the data in Short Exercise

Requirement

1. Compute Famous Cut’s net income for the year ended December 31, 2012.

Preparing an adjusted trial balance [10 min]

Famous Cut Hair Stylists has begun the preparation of its adjusted trial balance as follows:

Year-end data include the following:

a. Supplies on hand, $300.

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b. Depreciation, $1,000.

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c. Accrued interest expense, $600.

Requirement

1. Complete Famous Cut’s adjusted trial balance. Key each adjustment by letter.