Chapter 3

(1)

The adjusted trial balance for Heller company on December 31,2016, contains the following accounts and balances: Retained Earnings, $4,300; Dividends, $350; Service Revenue, $2,600; Rent Expense, $400; Wages Expense, $900; Utilities Expense, $200; Telephone Expense, $50; and Income Taxes Expense, $350;

Prepare an income statement in proper form for the month of December.

(2)

A service that has been performed, but for which money has not yet been received, is recorded as a debit to Accounts Receivable and a credit to Fees Earned.

True False