Exercise 1-8

The following items and amounts were taken from Wildhorse Co.s 2017 income statement and balance sheet.

Cash		$ 89,400
Retained earnings		120,000
Cost of goods sold		438,800
Salaries and wages expense		118,500
Prepaid insurance		8,100
Inventory		64,900
Accounts receivable		91,000
Sales revenue		587,700
Notes payable		6,100
Accounts payable		51,200
Service revenue		5,100
Interest expense		1,810

In each case, identify whether the item is an asset, liability, stockholders' equity, revenue, or expense item.

choose the correct category LiabilityRevenueAssetStockholders' EquityExpense		Cash
choose the correct category LiabilityStockholders' EquityRevenueExpenseAsset		Retained earnings
choose the correct category RevenueExpenseAssetLiabilityStockholders' Equity		Cost of goods sold
choose the correct category RevenueStockholders' EquityExpenseAssetLiability		Salaries and wages expense
choose the correct category AssetStockholders' EquityLiabilityRevenueExpense		Prepaid insurance
choose the correct category RevenueStockholders' EquityAssetLiabilityExpense		Inventory
choose the correct category RevenueStockholders' EquityExpenseLiabilityAsset		Accounts receivable
choose the correct category RevenueExpenseStockholders' EquityAssetLiability		Sales revenue
choose the correct category Stockholders' EquityLiabilityExpenseAssetRevenue		Notes payable
choose the correct category Stockholders' EquityLiabilityRevenueExpenseAsset		Accounts payable
choose the correct category AssetLiabilityStockholders' EquityRevenueExpense		Service revenue
choose the correct category ExpenseRevenueAssetLiabilityStockholders' Equity		Interest expense

SHOW LIST OF ACCOUNTS

Prepare an income statement for Wildhorse Co. for the year ended December 31, 2017.

Wildhorse Co. Income Statement choose the accounting period For the Year Ended December 31, 2017December 31, 2017For the Month Ended December 31, 2017
select an opening name for section one DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
enter an income statement item	$enter a dollar amount
enter an income statement item	enter a dollar amount
select a closing name for section one Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues		$enter a subtotal of the two previous amounts
select an opening name for section two DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
enter an income statement item	enter a dollar amount
enter an income statement item	enter a dollar amount
enter an income statement item	enter a dollar amount
select a closing name for section two Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues		enter a subtotal of the three previous amounts
select a closing name for this statement DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues		$enter a total net income or loss amount