3. Financial Statements Income Statement using the Accural Basis of Accounting.

Step 1: List and label which of the following are revenues or expenses assuming the accrual basis.

Step 2: Prepare the Income Statement to include the items you determined were revenues and expenses.

Propel Nutrition has the following information from the accounting records:

A. Inventory purchased for resale $12,000.

B.Utility expense $400.

C. Rent expense $1,450.

D. Sales on open account $23,460.

E. Cash sales $13,780.

F. Cost of inventory sold $8,400.

G. Paid for insurance in advance $1,600.

H. Borrowed $20,000 from the bank.

I. Issued $10,000 of common stock to two shareholders.

J. Employees have worked for a week earning $2,000. Will be paid one week later.

K. Earned $6.43 interest on the company checking account.

L Incurred $36 of service charges on the company checking account.