The Accountant for Flagger Company Prepared the Following List of Account

question 35

Essay

The accountant for Flagger Company prepared the following list of account balances from the company's records for the year ended December 31: $$\begin{array} { l r l r } \text { Fees earned } & \$ 165,000 & \text { Cash } & \$ 30,000 \\\text { Accounts receivable } & 14,000 & \text { Selling expenses } & 44,000 \\\text { Equipment } & 42,000 & \text { Common stock } & 36,000 \\\text { Accounts payable } & 12,000 & \text { Interest income } & 3,000 \\\text { Salaries \& wages expense } & 40,000 & \text { Rent expense } & 51,000 \\\text { Income taxes payable } & 5,000 & \text { Prepaid rent } & 2,000 \\\text { Notes payable } & 20,000 & \text { Income taxes expense } & 18,000\end{array}$$ Prepare an income statement for Flagger Company in good form.

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Definitions:

Greenstone

Metamorphosed basalt or other mafic volcanic rock, typically found in ancient geological formations.

Banded Gneiss

A metamorphic rock characterized by alternating light and dark mineral bands, formed under high-temperature and high-pressure conditions.

Anticline

A type of fold in the earth's surface where the strata have been bent upwards, creating an arch-like shape.

Syncline

A syncline is a fold in rock layers that slopes upward on both sides towards a central valley, usually indicating layers that were deposited in a basin.