Prepare an income statement given the transaction list.

12/1/2017 Borrow 25,000 from the bank. Terms: 5 years 7% payable monthly. 22/1/2017 Buy land and building for $10,000 and $150,000 respectively. Take out a 15 mortgage for both at 6.5% payable monthly 32/1/2017 Pay salaries and taxes accrued at the end of January during January 42/1/2017 Purchase 2500 units for $27,500 of product with terms of 1\% 10n 30 fob shipping point on account, included on the invoice from the supplier were shipping charges in the amount of $1900 52/3/2017 Sell 900 units for $15,750 on credit 62/5/2017 Pay for expendable supplies for 45.00 72/5/2017 Pay electric bill for 330 82/8/2017 Charge 85.00 for client dinner on visa 92/8/2017 Pay for the purchase made on February 1 (you need to figure out how much) 10 2/8/2017 Pay for Advertising spot that will air in March $4,000 112/10/2017 Receive $11,000 from customer who previously bought on account 12 2/15/2017 Accrue salaries and FICA taxes for the 1st through the 15th Gross salaries =$2,000 13142/15/2017Payfortelephonebill$1812/15/2017Payforshippingtocustomer$95 152/15/2017 Receive $4,750 from customer who previously bought on account 162/15/2017 Purchase office furniture for $8,400 (zero salvage value, 7 year life) 172/15/2017 Buy new laptop for 5,400 (zero salvage value, 3 year life) 182/16/2017 Sell 900 units for $14,400 on account Terms 2%/10n/30 192/25/2017 Receive payment for sale made on the 16th 202/26/2017 Pay for cleaning service $400 212/28/2017 Pay visa bill for January charges 222/28/2017 Pay accrued salaries and taxes for the pay period February 1 to 15 232/28/2017 Sell 300 units for $5,340 242/28/2017 Receive $5,000 for a special order that will be delivered in March 252/28/2017 Receive invoice for office supplies received on the same day in the amount of $250 262/28/2017 Company declares and pays a cash dividend of $1.50 per share 1029 Continue with the following adjusting items. After this section, your T accounts should match your adjusted trial balance. 272/28/2017 Fill out asset schedule and record depreciation on the AJE tab 282/28/2017 Accrue Payroll and FICA tax to be paid on March 1 for the last part of February. Gross =$2000 and post to AJE tab 292/28/2017 Accrue the interest payable on loans, round to the nearest dollar and post in AJE tab 30 2/28/2017 At the beginning of January, you paid $1,350 for 6 months of vehicle insurance and $600 for 6 months of worker's compensaton insurance. Make any necessary adjustments and post to the AJE tab. 312/28/2017ln January, you paid for 3 months of rent (January - March). Adjust prepaid rent for February. 322/28/2017 Prepare check register and make any additional entries after completing number 33. 332/28/2017 Prepare bank reconciliaiton and post any necessary adjusting entries to the Adjusting Journal Entry Tab 342/28/2017 Post the results from the AJE tab directly to the TB worksheet and T accounts. 352/28/2017 Complete the Trial balance worksheet 362/28/2017 Prepare the Income Statement, Statement of changes in Shareholders' equity and Balance Sheet 372/28/2017 Prepare closing entry an post to closing entry tab, T Accounts, and Trialbalance worksheet. ANSWER KEY, INC. INCOME STATEMENT FOR THE MONTH ENDED FEBRUARY 28, 2017 REVENUES Product Sales Service Sales Less: sales discounts Total revenue COST OF GOODS SOLD GROSS PROFIT OPERATING EXPENSES Advertising Auto expense Bank service charges Insurance expense Meals and entertainments Payroll tax expense postage Rent expense Repairs and maintenance Salaries and wages Supplies expense Telephone Utilities Workers' compesation insurance Total operating expenses OTHER INCOME AND (EXPENSES) Depreciation and amortization Total other income and (expenses) NET INCOME 12/1/2017 Borrow 25,000 from the bank. Terms: 5 years 7% payable monthly. 22/1/2017 Buy land and building for $10,000 and $150,000 respectively. Take out a 15 mortgage for both at 6.5% payable monthly 32/1/2017 Pay salaries and taxes accrued at the end of January during January 42/1/2017 Purchase 2500 units for $27,500 of product with terms of 1\% 10n 30 fob shipping point on account, included on the invoice from the supplier were shipping charges in the amount of $1900 52/3/2017 Sell 900 units for $15,750 on credit 62/5/2017 Pay for expendable supplies for 45.00 72/5/2017 Pay electric bill for 330 82/8/2017 Charge 85.00 for client dinner on visa 92/8/2017 Pay for the purchase made on February 1 (you need to figure out how much) 10 2/8/2017 Pay for Advertising spot that will air in March $4,000 112/10/2017 Receive $11,000 from customer who previously bought on account 12 2/15/2017 Accrue salaries and FICA taxes for the 1st through the 15th Gross salaries =$2,000 13142/15/2017Payfortelephonebill$1812/15/2017Payforshippingtocustomer$95 152/15/2017 Receive $4,750 from customer who previously bought on account 162/15/2017 Purchase office furniture for $8,400 (zero salvage value, 7 year life) 172/15/2017 Buy new laptop for 5,400 (zero salvage value, 3 year life) 182/16/2017 Sell 900 units for $14,400 on account Terms 2%/10n/30 192/25/2017 Receive payment for sale made on the 16th 202/26/2017 Pay for cleaning service $400 212/28/2017 Pay visa bill for January charges 222/28/2017 Pay accrued salaries and taxes for the pay period February 1 to 15 232/28/2017 Sell 300 units for $5,340 242/28/2017 Receive $5,000 for a special order that will be delivered in March 252/28/2017 Receive invoice for office supplies received on the same day in the amount of $250 262/28/2017 Company declares and pays a cash dividend of $1.50 per share 1029 Continue with the following adjusting items. After this section, your T accounts should match your adjusted trial balance. 272/28/2017 Fill out asset schedule and record depreciation on the AJE tab 282/28/2017 Accrue Payroll and FICA tax to be paid on March 1 for the last part of February. Gross =$2000 and post to AJE tab 292/28/2017 Accrue the interest payable on loans, round to the nearest dollar and post in AJE tab 30 2/28/2017 At the beginning of January, you paid $1,350 for 6 months of vehicle insurance and $600 for 6 months of worker's compensaton insurance. Make any necessary adjustments and post to the AJE tab. 312/28/2017ln January, you paid for 3 months of rent (January - March). Adjust prepaid rent for February. 322/28/2017 Prepare check register and make any additional entries after completing number 33. 332/28/2017 Prepare bank reconciliaiton and post any necessary adjusting entries to the Adjusting Journal Entry Tab 342/28/2017 Post the results from the AJE tab directly to the TB worksheet and T accounts. 352/28/2017 Complete the Trial balance worksheet 362/28/2017 Prepare the Income Statement, Statement of changes in Shareholders' equity and Balance Sheet 372/28/2017 Prepare closing entry an post to closing entry tab, T Accounts, and Trialbalance worksheet. ANSWER KEY, INC. INCOME STATEMENT FOR THE MONTH ENDED FEBRUARY 28, 2017 REVENUES Product Sales Service Sales Less: sales discounts Total revenue COST OF GOODS SOLD GROSS PROFIT OPERATING EXPENSES Advertising Auto expense Bank service charges Insurance expense Meals and entertainments Payroll tax expense postage Rent expense Repairs and maintenance Salaries and wages Supplies expense Telephone Utilities Workers' compesation insurance Total operating expenses OTHER INCOME AND (EXPENSES) Depreciation and amortization Total other income and (expenses) NET INCOME