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.

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.