Flynn Design Agency was founded by Kevin Flynn in January 2009.Presented below is the adjusted trial balance as of December 31, 2010. Flynn Design Agency Adjusted Trial Balance December 31, 2010

Account Titles	Dr	Cr
Cash	$10,000
Accounts Receivable	21,500
Art Supplies	5,000
Prepaid Insurance	2,500
Printing Equipment	68,000
Accumulated Depreciation		$35,000
Accounts Payable		8,000
Interest Payable		150
Notes Payable		5,000
Unearned Advertising Revenue		5,600
Salaries Payable		1,300
Common Stock		10,000
Retained Earnings		3,500
Advertising Revenue		71,500

Salaries Expense	14,300
Insurance Expense	850
Interest Expense	500
Depreciation Expense	10,000
Art Supplies Expense	3,400
Rent Expense	4,000
Total	$140,050	$140,050

Prepare a single-step income statement for the year ending December 31, 2010. Correct Answer: (Chapter 4) Flynn Design Agency Income Statement For the Year Ended December 31, 2010

Revenues:
Advertising revenue		$71,500
Expenses:
Salaries expense	$14,300
Depreciation expense	10,000
Rent expense	4,000
Art supplies expense	3,400
Insurance expense	850
Interest expense	500
	Total expense	33,050
Net Income		$38,450