Question

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

Answer 1

Answer:

                               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.