The following items and amounts were taken from Linus Inc."s 2012 income statement and balance sheet.
|
Cash
|
$84,700
|
|
Accounts receivable
|
88,419
|
|
Retained earnings
|
123,192
|
|
Sales revenue
|
584,951
|
|
Cost of goods sold
|
438,458
|
|
Income taxes payable
|
6,499
|
|
Salaries and wages expense
|
115,131
|
|
Accounts payable
|
49,384
|
|
Prepaid insurance
|
7,818
|
|
Service revenue
|
4,806
|
|
Inventory
|
$64,618
|
|
Interest expense
|
1,882
|
Instructions
(a) In each, case, identify on the blank line whether the item is an asset (A), liability (L), stockholder"s equity (SE), revenue (R), or expense (E) item.
(b) Prepare an income statement for Linus Inc. for the year ended December 31, 2012.