Preparing the income statement The accountant for Reva Stewart, CPA, P.C., has posted adjusting entries (a) through (e) to the accounts at December 31, 2012. Selected balance sheet accounts and all the revenues and expenses of the entity follow in T account form.
|
Accounts receivable |
Supplies |
|
|
22,700 |
1200(a) |
600 |
|
(e)800 |
|
|
|
Acc.depr equipment |
Acc.depr building |
|
|
5000 |
|
30,000 |
|
(b)1,900 |
|
(c)5,000 |
|
Salary payables |
Service revenue |
|
|
(d)900 |
105,700 |
|
|
|
(e)800 |
|
|
Salary expense |
Supplies expense |
|
|
28,200 |
(a)600 |
|
|
(d)900 |
|
|
|
Depreciation expense equip |
Depreciation expense bldg. |
|
|
(b)1,900 |
(c)5,000 |
|
Requirements
1. Prepare the income statement of Reva Stewart, CPA, P.C., for the year ended December 31, 2012.
2. Were 2012 operations successful?