The Accountant for Flagger Company Prepared the Following List of Account

question 138

Essay

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

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Definitions:

Recessional Moraine

A ridge of debris deposited at the point of furthest retreat of a glacier or ice sheet.

Continental Ice Sheet

A vast expanse of ice covering a large portion of a continental area, often thousands of kilometers wide and extremely thick.

Teardrop-Shaped Hills

Elongated hills formed by the erosion of underlying soft rock covered by a harder rock cap, often found in arid climates.

Hanging Valley

A glacial valley whose mouth is higher than the bottom of a larger glacially carved valley it joins.