Below are the account balances for Cowboy Law Firm at the en

Below are the account balances for Cowboy Law Firm at the end of December Cash Salaries expense Accounts payable Retained earnings Utilities expense Supplies Service revenue Common stock $ 5,000 2,000 3,000 4,000 1,100 13 ,400 8,900 5,800 Required: Use only the appropriate accounts to prepare an income statement an income statement COWBOY LAW FIRM Income Statement Expenses Total expenses

Solution

Income statement

Income

Service revenue = 8,900

Gross income = 8,900

Expense

Supplies = 13,400

Utilities expense = 1,100

Salary expense = 2,000

Total expense = 16,500

Net income = - 7,600