The Adjusted Trial Balance of Allen's Automotive Service Company on June

question 222

Essay

The adjusted trial balance of Allen's Automotive Service Company on June 30, 2014 includes the following accounts: Supplies, $300; Accumulated Depreciation, $8,500; Salaries and Wages Payable, $550, Note Payable $5,000; Service Revenue, $24,100; Salaries and Wages Expense, $12,750; Depreciation Expense, $2,250; Supplies Expense, $1,000; Rent Expense, $400; Utilities Expense, $350; and Interest Expense $250. Prepare an income statement for the month of June.

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Definitions:

Income Effect

The change in an individual's consumption resulting from a change in their income.

Normal Good

A good for which demand increases as the income of the consumer increases, showing a positive relationship between income and demand.

Income Effect

The impact of income fluctuations on an individual or an economy on the quantity of goods or services that is demanded.

Price Decreases

A reduction in the cost at which goods and services are sold, making them more affordable to consumers.