Accounting 205 - Financial Accounting Page 1 Karl Malaszczylt Exam # 2 - Chapters 1 - 6 NAME: Please anti: use the space grovided for each question Part I - Income Statement - 10 points Widget, Inc. has the following balances on their December 31 trial Balance. Prepare the year end Income Statement for widget, Inc. The Inventory on January 1 was $25,000. Debit Credit Accounts Payable ?,000 Cash 30,000 Freight In 0,000 Inventory 30,000 Office Expenses 5,000 Owners Equity 21,000 Postage 3,000 Purchase Discounts 6,000 Purchase Returns and Allowances 4,000 Purchases 80,000 Rent 12,000 Salaries 20,000 Sales 150,000 180,000 108,000 Wiaget, Inc. Income Statement For the year ended December 31, 20x3