Answer to Question #213437 in Accounting for zuby

Question

Exercise J Assume that the following items were included in the Retained Earnings column in the summary of

transactions for Cinck Company for July 2010:

Salaries expense $120,000

Service revenue 300,000

Gas and oil expense 27,000

Rent expense 48,000

Dividends paid 40,000

Prepare an income statement for July 2010.

Answer 1

Solution:

The income statement is as follows: