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Prepare an Income Statement for the Year Ended December 31,2012

Question 154

Essay

Prepare an income statement for the year ended December 31,2012 from the adjusted trial balance below.
Deavours Photography
Adjusted Trial Balance
December 31,2012
 Accounts  Debit  Credit  Cash $2,000 Prepaid insurance 2,000 Office supplies 600 Office equipment 16,000 Accumulated depreciation $3,000 Accounts payable 5,000 Salaries payable 900 Unearned servicerevenue 2,500 C. Devours, capital 7,450 C. Devours, drawing 5,600 Service revenue 15,350 Salaries expense 4,600 Depreciation expense 1,000 Supplies expense 400 Insurance expense 2,000 Totals $34,200$34,200\begin{array}{|l|r|r|}\hline\text { Accounts } & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 2,000 & \\\hline \text { Prepaid insurance } & 2,000 & \\\hline \text { Office supplies } & 600& \\\hline \text { Office equipment } & 16,000 \\\hline \text { Accumulated depreciation } & & \$ 3,000 \\\hline \text { Accounts payable } & & 5,000 \\\hline \text { Salaries payable } & & 900 \\\hline \text { Unearned servicerevenue } & & 2,500 \\\hline \text { C. Devours, capital } & & 7,450 \\\hline \text { C. Devours, drawing } & 5,600 & \\\hline \text { Service revenue } & & 15,350 \\\hline \text { Salaries expense } & 4,600 & \\\hline \text { Depreciation expense } & 1,000 & \\\hline \text { Supplies expense } & 400 & \\\hline \text { Insurance expense } & 2,000 & \\\hline \text { Totals } & \$ 34,200 & \$ 34,200\\\hline\end{array}

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