PREPARING AN INCOME STATEMENT Sparrow Company had the following adjusted trial balance at December 31, 2009.

Debit Credit Cash $ 3,300 Accounts Receivable 5,240 Prepaid Insurance 4,400 Equipment 40,000 Accumulated Depreciation, Equipment $ 24,000 Accounts Payable 3,100 Salaries Payable 4,400 Unearned Revenue 3,750 Common Stock 8,000 Retained Earnings 2,130 Dividends 10,500 Service Revenue 95,000 Salaries Expense 48,000 Rent Expense 15,000 Insurance Expense 2,200 Depreciation Expense 4,000 Income Tax Expense 7,740 Total $140,380 $ 140,380 Required:

Prepare a single-step income statement for Sparrow Company for 2009.

Cornerstone Exercise