Butterfield’s Bookkeeping Service began operations on January 1, 2005. The following information is taken from its accounting records as of December 31, 2005.

Required:

a. What is the cost of services provided?

b. Prepare a single-step income statement for Butterfield’s Bookkeeping Service for 2005.

Transcribed Image Text:

Bookkeeping service revenue $80,000 Bookkeeping salaries 42,000 Bookkeeping office rent 12,000 Depreciation on bookkeeping equipment 2,000 Bookkeeping supplies used 700 Advertising 800