Prepare an Income Statement for the Year Ended December 31,2012

question 63

Essay

Prepare an income statement for the year ended December 31,2012 from the adjusted trial balance below.
Deavours Photography
Adjusted Trial Balance
December 31,2012
$\begin{array}{|l|r|r|}\hline\text { Accounts } & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 2,000 & \\\hline \text { Prepaid insurance } & 2,000 & \\\hline \text { Office supplies } & 600& \\\hline \text { Office equipment } & 16,000 \\\hline \text { Accumulated depreciation } & & \$ 3,000 \\\hline \text { Accounts payable } & & 5,000 \\\hline \text { Salaries payable } & & 900 \\\hline \text { Unearned servicerevenue } & & 2,500 \\\hline \text { C. Devours, capital } & & 7,450 \\\hline \text { C. Devours, drawing } & 5,600 & \\\hline \text { Service revenue } & & 15,350 \\\hline \text { Salaries expense } & 4,600 & \\\hline \text { Depreciation expense } & 1,000 & \\\hline \text { Supplies expense } & 400 & \\\hline \text { Insurance expense } & 2,000 & \\\hline \text { Totals } & \$ 34,200 & \$ 34,200\\\hline\end{array}$

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Definitions:

ASRS

Automated Storage and Retrieval Systems, a technology used in manufacturing and warehousing to automatically place and retrieve loads from defined storage locations.

Lean Manufacturing

A systematic method for waste minimization within a manufacturing system without sacrificing productivity.

Recyclable Materials

Materials that can be processed and used again, often after being recovered from waste or by-products.

RFID

Radio-frequency identification, a technology used to identify and track tags attached to objects.