Question

Exercise 3-12 Waterway Design was founded by Thomas Grant in January 2011. Presented below is the adjusted trial balance as of December 31, 2017. WATERWAY DESIGN ADJUSTED TRIAL BALANCE DECEMBER 31, 2017 Debit Credit Cash $12,255 Accounts Receivable 22,755 Supplies 6,255 Prepaid Insurance 3,755 Equipment 61,255 Accumulated Depreciation-Equipment $36,255 Accounts Payable 6,255 Interest Payable 162 Notes Payable 5,400 Unearned Service Revenue 6,855 Salaries and Wages Payable 1,568 Common Stock 11,255 Retained Earnings 4,755 Service Revenue 62,755 Salaries and Wages Expense 12,555 Insurance Expense 1,118 Interest Expense 162 Depreciation Expense 7,400 Supplies Expenses 3,400 Rent Expense 4,350 $135,260 $135,260

Prepare an income statement for the year ending December 31, 2017. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer 1

Waterway Design
Income statement for the year ending December 31, 2017
Particulars	Amount ($)
Revenue
Services Revenue	62,755
Total Revenue (a)	62,755
Expenses
Salaries Expenses	12,555
Insurance Expense	1,118
Interest Expense	162
Depreciation Expense	7,400
Supplies Expense	3,400
Rent Expense	4,350
Total Expense (b)	28,985
Net Income (a) – (b)	33,770