Requirements
1.	Prepare Gate City Answering Service income statement.

Presented here are the accounts of Gate City Answering Service for the
year ended December 31, 2012.
Land	$ 8,000	Owner investment, 2012	$ 28,000
Note payable	32,000	Accounts payable	11,000
Property tax expense	2,600	Accounts receivable	1,000
Wayne, drawing	30,000	Advertising expense	15,000
Rent expense	13,000	Building	145,200
Salary expense	65,000	Cash	3,000
Salary payable	1,300	Equipment	16,000
Service revenue	192,000	Insurance expense	2,500
Supplies	10,000	Interest expense	7,000
Waynce, capital, 12/31/2011	54,000

Req. 1

Gate City Answering Service

Income Statement

Year Ended December 31, 2012

Revenue:

Service revenue

$ 192,000

Expenses:

Insurance expense

Total expenses

-

Net income

$ 192,000