The following accounts and balances were drawn from the records of Barker Company at December 31, Year 2:
Supplies
Cash flow from investing act.
Prepaid insurance
Service revenue
Other operating expenses
Supplies expense
Insurance expense
Beginning common stock
Cash flow from operating act.
Common stock issued
$ 1,000
(5,200)
1,200
65,200
41,000
1,100
2,100
40,000
15,600
5,000
Beginning retained earnings
Cash flow from financing act.
Rent expense
Dividends
Cash
Accounts receivable
Prepaid rent
Unearned revenue
Land
Accounts payable
$ 9,300
(5,000)
2,500
3,000
48,000
14,200
4,800
6,400
24,000
17,000
Required
Use the accounts and balances from Barker Company to construct an income statement.

Respuesta :

The Income Statement is $18,500

Construction of Baker income statement

Revenue  

Service Revenue         $65,200  

Total Revenue         $65,200

Expenses  

Other operating expenses        $41,000  

Supplies Expense              $1,100  

Insurance expense           $2,100  

Rent Expense           $2,500  

Total Expenses         $46,700

Net Income          $18,500

($65,200-$46,700)

Inconclusion the Income Statement is $18,500

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