=+BALBOA REPAIR SERVICES Income Statement For the Year Ended October 31, 2008 Service revenue Less: Rent paid $30,000

$124,920 Wages paid 27,750 Supplies paid 7,650 Utilities paid 4,800 Insurance paid 3,600 Miscellaneous payments 3,200 77,000 Net income $ 47,920 A3-2 Adjustments for financial statements A3-1 Accrued revenue

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120 Chapter 3 A3-3 Business emphasis GROUP A3-4 Cash basis income statement BALBOA REPAIR SERVICES Balance Sheet October 31, 2008 Assets Cash $16,725 Amounts due from customers 9,150 Truck 45,000 Total assets $70,875 Equities