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(1) Acquired $20,000 cash from the issue of common stock.
(2) Purchased $800 of supplies on account.
(3) Purchased land that cost $14,000 cash.
(4) Paid $800 cash to settle accounts payable created in Event 2.
(5) Recognized revenue on account of $10,500.
(6) Paid $3,800 cash for other operating expenses.
(7) Collected $7,000 cash from accounts receivable.

Prepare an income statement.

Respuesta :

Answer:

                                    Income statement

                                                                           Amount in $

Revenue                                                                10,500

Operating expenses                                              (3,800)

Net income                                                            6,700              

Explanation:

The income statement shows the revenue and expenses of an organization that gives rise to a net income or loss for the period under review.

Hence only the given revenue and expense items given would be considered.

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