The accountant for Flagger Company prepared the following list of account balances from the company’s records for the year ended December 31: Fees earned $165,000 Cash $30,000
Accounts receivable 14,000 Selling expenses 44,000
Equipment 42,000 Common stock 36,000
Accounts payable 12,000 Interest income 3,000
Salaries & wages expense 40,000 Rent expense 51,000
Income taxes payable 5,000 Prepaid Rent 2,000
Notes payable 20,000 Income taxes expense18,000
Prepare an income statement for Flagger Company in good form.
Flagger Company
Income Statement
For the Year Ended December 31
Revenues:
Accounts receivable $
Cash $
Expenses:
Rent expense $
Selling expenses
Salary and wages expense
Income taxes expense
Total expenses
Net income or loss $