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Income Statement Preparation

Income Statement Preparation
The following selected information is taken from the records of Pickard and Associates.

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . $ 143,000
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . 95,000
Advertising expense . . . . . . . . . . . . . . . . . . . . . . 14,500
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,000
Supplies expense . . . . . . . . . . . . . . . . . . . . . . . . 31,500
Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000
Utilities expense . . . . . . . . . . . . . . . . . . . . . . . . . 2,500
Income taxes (30% of income before taxes) . . . . _______________?
Miscellaneous expense . . . . . . . . . . . . . . . . . . . . 5,100
Owners' equity . . . . . . . . . . . . . . . . . . . . . . . . . . 215,000
Salaries expense . . . . . . . . . . . . . . . . . . . . . . . . 78,000
Fees (revenues) . . . . . . . . . . . . . . . . . . . . . . . . . 476,000

1. Prepare an income statement for the year ended December 31, 2009. (Assume that
11,000 shares of stock are outstanding.)

Please use the above data to prepare an Income Statement.

Solution Summary

The solution explains how to prepare an income statement

$2.19