Question
Below is financial data for New York Safety Fire as of 31 December 2021: Cash at bank $100,000 Truck $65,000 Accrued wages 25,000 Michael Corleone,
Below is financial data for New York Safety Fire as of 31 December 2021:
Cash at bank
| $100,000 | Truck
| $65,000 |
Accrued wages | 25,000 | Michael Corleone, capital 1 January, 2021 | 38,000 |
Accounts receivable | 55,000 | Depreciation expense-truck | 3,000 |
Insurance expense | 30,000 | Advertising expense | 5,000 |
Accounts payable | 15,000 | Wages expense | 45,000 |
Service revenue | 180,000 | Michael Corleone, drawings | 1,500 |
Insurance payable | 25,000 | Supplies expense | 28,000 |
Telephone expense | 8,000 | Loan payable | 38,000 |
Office Furniture | 70,000 | Accrued interest | 1,000 |
Prepaid Advertising | 20,000 | Accumulated depreciation-truck | 12,000 |
Unearned Revenue | 15,000 | Supplies | 44,000 |
Required: Prepare an income statement for New York Safety Fire for the month ended 31 December 2021. (10 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started