Michael Company Has Just Completed Operations for the Year Ended

question 27

Essay

Michael Company has just completed operations for the year ended December 31,2018.This is the second year of operations for the sole proprietorship.The following data have been assembled for the business.
$$\begin{array} { | l | r |r | r | } \hline \text { Accounts Payable } & \$ 12,200 & \text { Office Expense } & \$ 6,500 \\\hline \text { Accounts Receivable } & 14,500 & \text { Rent Expense } & 9,600 \\\hline \text { Cash } & 8,200 & \text { Michael, Capital, Jan. 1,2018 } & 17,300 \\\hline \text { Michael, Withdrawals } & 13,500 & \text { Salaries Expense } & 36,000 \\\hline \text { Equipment } & 15,000 & \text { Service Revenue } & 84,000 \\\hline \text { Insurance Expense } & 4,000 & \text { Utilities Expense } & 6,200 \\\hline\end{array}$$ Prepare the income statement.Use a proper heading.

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Definitions:

Mental Reframing

The process of intentionally shifting one's perspective on a situation to change its emotional impact, often used in cognitive behavioral therapy.

Action Identification Theory

A psychological theory that explains how individuals conceive of their actions in terms of higher-level goals or lower-level details.

Concrete Goal

A specific, clearly defined, and measurable objective that an individual or group aims to achieve.

Two-Factor Theory

A concept in psychology that proposes emotional experiences arise from a combination of a state of physiological arousal and a cognitive interpretation of that arousal.