Accounting Activity Two Question 1. The following information relate to a Dana Service Company: Salary expense 2000 General expense 1000 Advertising expense 1500 Service revenue 9000 Other revner 500 Required: Prepare an income statement Question 2. The following information relate to SAS Company: Beginning inventory 2000 Purchases 10000 28000 Ending inventory 1000 Selling expertise 1000 Advertising expense 2000 Administrative expense 3000 Investment revenue 4000 Interest expense 2000 Q 2 Income Statement Solution Sales 28000 Less Cost of goods sold (11000) 2000 - 10000 - 1000 11000 Gross Income 17000 Less operating expenses Selling 1000 (6000) Advertising 2000 Admin 3000 Operating Income 11000 Plus other revenue 4000 2000 Less Interest expense 2000 Net Income Question 3. Nancy Company prepare the following information. Cash Accounts receivable 3000 Ending inventory 4000 Prepaid insurance 1000 Fixed assets Drawing 2000 Net income 6000 Beginning capital 21000 Accounts payable 3000 Non-current liabilities 2000 Required: Prepare a balance sheet for Nancy Company