Betty Smith is the owner of Accurate Tax Service. For the year ending April 30, 2019, the following information is available for this service business. At the beginning of this accounting period, the balance in the Betty Smith, Capital account was $31,800. Following is a summary of activities during this accounting period: Betty Smith, capital withdrawn: $17,100 Revenue from income tax preparation: $71,400 Revenue from monthly clients: $45,600 Salaries expense: $11,000 Advertising expense: $630 Rent expense: $7,000 Automobile expense: $1,100 Office supplies expense: $7,200.

Advanced Engineering Mathematics
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ISBN:9780470458365
Author:Erwin Kreyszig
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Betty Smith is the owner of Accurate Tax Service. For the year ending April 30, 2019, the following information is available for this
service business. At the beginning of this accounting period, the balance in the Betty Smith, Capital account was $31,800. Following is
a summary of activities during this accounting period:
Betty Smith, capital withdrawn: $17,100
Revenue from income tax preparation: $71,400
Revenue from monthly clients: $45,600
Salaries expense: $11,000
Advertising expense: $630
Rent expense: $7,000
Automobile expense: $1.100
Office supplies expense: $7,200.
Note: You should assume that all profit (or loss) accrued during this accounting period is absorbed into the Betty Smith, Capital
account at the end of the period.
Following are the account balances at the end of this accounting period (except Betty Smith, Capital):
Cash: $59,600
Accounts receivable: $3,800
Office furniture and fixtures: $12,200
Office machines and computers: $17,000
Automobile: $8,300
Accounts payable: $1,400
Transcribed Image Text:Betty Smith is the owner of Accurate Tax Service. For the year ending April 30, 2019, the following information is available for this service business. At the beginning of this accounting period, the balance in the Betty Smith, Capital account was $31,800. Following is a summary of activities during this accounting period: Betty Smith, capital withdrawn: $17,100 Revenue from income tax preparation: $71,400 Revenue from monthly clients: $45,600 Salaries expense: $11,000 Advertising expense: $630 Rent expense: $7,000 Automobile expense: $1.100 Office supplies expense: $7,200. Note: You should assume that all profit (or loss) accrued during this accounting period is absorbed into the Betty Smith, Capital account at the end of the period. Following are the account balances at the end of this accounting period (except Betty Smith, Capital): Cash: $59,600 Accounts receivable: $3,800 Office furniture and fixtures: $12,200 Office machines and computers: $17,000 Automobile: $8,300 Accounts payable: $1,400
Prepare an income statement for the year ending April 30, 2019.
ACCURATE
INCOME
Year Ended
REVENUE
EXPENSES
Salaries
TAX SERVICE
Rent
STATEMENT
April 30, 2019
$
5.
Advertising $
$
Automobile $
Office Supplies $
NET INCOME $
Transcribed Image Text:Prepare an income statement for the year ending April 30, 2019. ACCURATE INCOME Year Ended REVENUE EXPENSES Salaries TAX SERVICE Rent STATEMENT April 30, 2019 $ 5. Advertising $ $ Automobile $ Office Supplies $ NET INCOME $
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