Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $4,000Salaries expense 1,500Accounts payable 2,000Retained earnings 4,400Utilities expense 1,000Supplies 12,400Service revenue 7,900Common stock 4,600 Use only the appropriate accounts to prepare an income statement.

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Business

Taniya

10 July, 22:57

Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $4,000Salaries expense 1,500Accounts payable 2,000Retained earnings 4,400Utilities expense 1,000Supplies 12,400Service revenue 7,900Common stock 4,600 Use only the appropriate accounts to prepare an income statement.

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Monserrat Richmond · Answer 1

The preparation of the income statement is presented below:

Cowboy Law Firm

Income statement

At the end of December

Particulars Amount

Service revenue $7,900

Less: expenses

Salaries expense - $1,500

Utilities expense - $1,000

Net income $5,400