MONTHLY FINANCIAL STATEMENTS. Wilmington Consulting Services, Inc., prepares monthly financial statements. The adjusted account balances at the end of January 19x2 and February 19x2 are as follows: lol

REQUIRED:
1. Prepare the income statement for the month ended January 31, 19x2.
2. Prepare the income statement for the month ended February 28, 19x2.
3. Is it necessary to post monthly adjusting entries to the general ledger?

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ADJUSTED ACCOUNT BALANCES 1/31/x2 2/28/x2 ACCOUNT Cash Accounts receivable Prepaid rent Equipment Accumulated depreciation, DEBIT CREDIT DEBIT CREDIT $ 2,500 $ 4,600 5,600 11,100 4,400 3,300 87,000 87,000 equipment $ 22,200 $ 22,800 Accounts payable 500 1,300 Income taxes payable 900 1,500 Capital stock 50,000 50,000 Retained earnings, 12/31/x1 23,800 25,900 Service revenue 31,300 58,900 Salaries expense 13,700 27,800 Rent expense 1,100 2,200 Depreciation expense Income taxes expense Other expense Totals $128,700 $128,700 600 1,200 900 1,500 12,900 21,700 $160,400 $160,400