The income statement is the statement that shows all revenues and expenses of the business and at the end, it shows net income or loss of the business. All the incurred expenses are deducted from the revenues earned for the calculation of net profit or loss. To Prepare: The income statement for W T Company.

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Chapter 3, Problem 11E

1.

To determine

Concept Introduction:

The income statement is the statement that shows all revenues and expenses of the business and at the end, it shows net income or loss of the business. All the incurred expenses are deducted from the revenues earned for the calculation of net profit or loss.

To Prepare: The income statement for W T Company.

2.

To determine

Concept Introduction:

Retained Earnings means accumulated earnings of the business which is kept for future investment, dividend distribution, and expansion purposes. The retained earnings are recorded under the equity section of the balance sheet.

To Prepare: The statement of retained earnings for the company.

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