Prepare an annual income statement from the following adjusted trial balance.

Lucky Enterprises

Adjusted Trial Balance

December 31, 2017

Account Debit Credit

Cash $1,100

Accounts Receivable 16,100

Allowance for Doubtful Accounts $800

Prepaid Insurance 2,200

Equipment 28,000

Accumulated Depreciation 4,900

Notes Payable 10,600

Accounts Payable 2,900

Salaries and Wages Payable 2,300

Interest Payable 100

Common Stock 17,000

Retained Earnings 7,500

Dividends 2,100

Service Revenue 122,100

Salaries and Wages Expense 83,300

Rent Expense 22,400

Supplies Expense 5,500

Insurance Expense 3,700

Interest Expense 800

Bad Debt Expense 900

Depreciation Expense 2,100

$168,200 $168,200

Question

Business

Leanna Hoffman

3 September, 17:52

Prepare an annual income statement from the following adjusted trial balance.

Lucky Enterprises

Adjusted Trial Balance

December 31, 2017

Account Debit Credit

Cash $1,100

Accounts Receivable 16,100

Allowance for Doubtful Accounts $800

Prepaid Insurance 2,200

Equipment 28,000

Accumulated Depreciation 4,900

Notes Payable 10,600

Accounts Payable 2,900

Salaries and Wages Payable 2,300

Interest Payable 100

Common Stock 17,000

Retained Earnings 7,500

Dividends 2,100

Service Revenue 122,100

Salaries and Wages Expense 83,300

Rent Expense 22,400

Supplies Expense 5,500

Insurance Expense 3,700

Interest Expense 800

Bad Debt Expense 900

Depreciation Expense 2,100

$168,200 $168,200

+3

Answers (1)

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Nathen Golden · Answer 1

Lucky Enterprises Income statement

Amount in $ Amount in $

Revenue 122,100

Operating expenses:

Salaries and Wages Expense 83,300

Rent Expense 22,400

Supplies Expense 5,500

Insurance Expense 3,700

Interest Expense 800

Bad Debt Expense 900

Depreciation Expense 2,100

(118,700)

Net Income / (loss) 3,400

Explanation:

The income statement is the statement that shows if an organization made a net income or loss from its operations over a period of time.

It shows the sales and expenses of the organization.