Question

On December 31, Hawkin's records show the following accounts. Equipment $ 4,500 Cash 2,400 Rent Expense 3,000 Accounts Receivable 2,100 Services Revenue 17,500 Accounts Payable 7,500 Wages Expense 8,000 Utilities Expense 2,200 Use the above information to prepare a December income statement for Hawkin.

Answer 1

Answer:

Hawkin`s

Income Statement for the year

Sales                                            17,500

Less Expenses :

Rent Expense          3,000

Wages Expense      8,000

Utilities Expense     2,200        (13,200)

Net Income                                  4,300

Explanation:

Income Statement include only income and expense items. Net Income = Sales - Expenses.