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25 February, 11:16

The adjusted trial balance of Parsons Company at December 31, 2014, includes the following accounts:

Owner's Capital $15,600,

Owner's Drawings $7,000,

Service Revenue $37,000,

Salaries and Wages Expense $16,000,

Insurance Expense $2,000,

Rent Expense $4,000,

Supplies Expense $1,500,

Depreciation Expense $1,300.

Prepare an income statement for the year.

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  1. 25 February, 13:24
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    Income statement of Parsons Company for the period ended December 31, 2014

    Amount in $ Amount in $

    Service Revenue 37,000

    Operating expense;

    Salaries and Wages Expense 16,000

    Insurance Expense 2,000

    Rent Expense 4,000

    Supplies Expense 1,500

    Depreciation Expense 1,300

    Total expense (24,800)

    Net income / (loss) 12,800

    Explanation:

    The income statement shows the income and expenses of a business. Owner's capital and drawings are elements of the business balance sheet. Other items given are elements of revenue and cost.
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