below are the account balances for schroeder corporation at the end of december. accounts balances cash $…

below are the account balances for schroeder corporation at the end of december. accounts balances cash $ 5,100 salaries expense 1,300 retained earnings 2,400 advertising expense 1,470 equipment 13,600 service revenue 12,000 common stock 9,700 accounts payable 2,470 use only the appropriate accounts to prepare an income statement. schroeder corporation income statement for the year ended december 31 revenues: expenses: total expenses
Answer
Explanation:
Step1: Identify revenue account
Service revenue is a revenue account. Its balance is $12,000.
Step2: Identify expense accounts
Salaries expense ($1,300) and Advertising expense ($1,470) are expense accounts.
Step3: Calculate total expenses
Total expenses = Salaries expense+Advertising expense = $1,300 + $1,470=$2,770
| SCHROEDER CORPORATION | ||
|---|---|---|
| Income Statement | ||
| For the year ended December 31 | ||
| Revenues: | ||
| Service revenue | $12,000 | |
| Expenses: | ||
| Salaries expense | $1,300 | |
| Advertising expense | $1,470 | |
| Total expenses | $2,770 |
Answer:
| SCHROEDER CORPORATION | ||
|---|---|---|
| Income Statement | ||
| For the year ended December 31 | ||
| Revenues: | ||
| Service revenue | $12,000 | |
| Expenses: | ||
| Salaries expense | $1,300 | |
| Advertising expense | $1,470 | |
| Total expenses | $2,770 |