E3-12 The accountant for Kay Fuston. Publisher, has posted adjusting entries (a)-

(e) to the accounts at December 31, 20X2. Selected balance sheet accounts and all the revenues and expenses of the entity follow in T-account form. Journalizing adjustments (Obj. 3, 4) Preparing the financial statements (Obj. 5) Preparing the financial statements (Obj. 5) 111 ACCUMULATED DEPRECIATION- ACCOUNTS RECEIVABLE SUPPLIES 23.000 4.000

(a) 1,000

(e) 7,000 SALARY PAYABLE

(d) 1,500 EQUIPMENT ACCUMULATED DEPRECIATION-BUILDING 5,000

(b) 2.000 33,000 (C) 5.000 SERVICE REVENUE

(e) 105,000 7,000 DEPRECIATION EXPENSE- DEPRECIATION EXPENSE- SALARY EXPENSE SUPPLIES EXPENSE EQUIPMENT BUILDING 28.000

(a) 1.000 T

(b) 2,000

(c) 5,000

(d) 1,500 Required 1. Prepare the income statement of Kay Fuston. Publisher, for the year ended December 31. 20X2. List expenses in order from the largest to the smallest. 2. Were 20X2 operations successful? Give the reason for your answer.