The following items and amounts were taken from Lonyear Inc.’s 2017 income statement and balance sheet. (LO 3)

______ Cash $ 84,700 ______ Accounts receivable $ 88,419 ______ Retained earnings 123,192 ______ Sales revenue 584,951 ______ Cost of goods sold 438,458 ______ Notes payable 6,499 ______ Salaries and wages expense 115,131 ______ Accounts payable 49,384 ______ Prepaid insurance 7,818 ______ Service revenue 4,806 ______ Inventory 64,618 ______ Interest expense 1,882 Instructions

(a) In each, case, identify on the blank line whether the item is an asset (A), liability (L), stockholders’ equity (SE), revenue (R), or expense (E) item.

(b) Prepare an income statement for Lonyear Inc. for the year ended December 31, 2017.