The following events apply to Paradise Vacationss first year of operations:

1. Acquired $24,000 cash from the issue of common stock on January 1, Year 1.

2. Purchased $1,000 of supplies on account.

3. Paid $4,680 cash in advance for a one-year lease on office space.

4. Earned $32,350 of revenue on account.

5. Incurred $13,100 of other operating expenses on account.

6. Collected $26,000 cash from accounts receivable.

7. Paid $9,200 cash on accounts payable.

8. Paid a $3,400 cash dividend to the stockholders.

Information for Adjusting Entries

9. There was $190 of supplies on hand at the end of the accounting period.

10. The lease on the office space covered a one-year period beginning November 1.

11. There was $4,000 of accrued salaries at the end of the period.

Required:

Prepare an income statement.

Complete this question by entering your answers in the tabs below.

First Column, Rows 1 - 6 Answer Options:

- Inventory

- Other operating expense

- Purchase

- Rent expense

- Retained earnings

- Salaries expense

- Service revenue

- Supplies expense

First Column, Row 7 Answer Options:

- Net income

- Net loss

Prepare an income statement