QQuestionAccounting
QuestionAccounting
On December 31, Hawkin's records show the following accounts.
| Cash | \$ 6,100 |
| :-- | --: |
| Accounts Receivable | 1,100 |
| Supplies | 4,000 |
| Equipment | 15,000 |
| Accounts Payable | 6,500 |
| Common stock | 11,900 |
| Retained earnings, December 1 | 4,500 |
| Dividends | 2,000 |
| Services Revenue | 16,500 |
| Wages Expense | 8,000 |
| Rent Expense | 2,000 |
| Utilities Expense | 1,200 |
# QS 1 - 15 (Algo) Preparing an income statement LO P^2
Use the above information to prepare a December income statement for Hawkin.
12 months agoReport content
Answer
Full Solution Locked
Sign in to view the complete step-by-step solution and unlock all study resources.
Step 1:I'll solve this step-by-step following the specified LaTeX formatting guidelines:
Step 2:: Identify Revenue
The total Services Revenue is $$16,500
Step 3:: Calculate Total Expenses
Total Expenses = $$8,000 + 2,000 + 1,200 = 11,200
- Rent Expense: 2,000
Step 4:: Calculate Net Income
16,500 - 11,200 = 5,300
Net Income = Total Revenue - Total Expenses
Step 5:: Prepare Income Statement
| **Net Income** | $$5,300$$ |
HAWKIN Income Statement For the Month Ending December 31 | Revenue | | |:--|--:| | **Expenses** | |
Final Answer
The December income statement shows total revenue of 16,500, total expenses of 11,200, resulting in a net income of 5,300.
Need Help with Homework?
Stuck on a difficult problem? We've got you covered:
- Post your question or upload an image
- Get instant step-by-step solutions
- Learn from our AI and community of students