Save-Mart was a retail store. Its account balances on February 28 (the end of its fiscal year), before adjustments, were as shown below: Debit balances Credit balances Cash Accounts receivable Merchandise inventory Store equipment Supplies inventory Prepaid insurance Selling expense Sales salaries Mise. general expense Sales discounts S 88,860 Accumulated depreciation on 127,430 store equipment 903,130 Notes payable 70,970 Accounts payable 17,480 Common stock 12,430 Retaincd earnings SI1,420 88,500 88,970 100,000 33,500 10,880 Sales 988,700 47,140 18,930 3,340

Income Statement also commonly called a profit and loss statement, one of the key financial statements (considered together with balance sheet and cash flow statement) which shows the revenues and expenses, as well as the gains and losses of a company fo…