Question 4 CADB Company provides delivery services for its clients. The company had the following transactions during the month of December, 2021: December 3 Purchased a delivery truck for $23,000 cash. December 12 Billed clients $18,000 for delivery services performed. December 14 Paid dividends to shareholders, $4,500. December 22 Paid cash for radio advertisement, $300. December 24 Performed delivery services for clients and collected $3,400 cash. December 31 Paid employee salaries for the month, $2,300. Instructions: Prepare an income statement for the month ended December 31, 2021 based on the information given above.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 4 CADB Company provides delivery services for its clients. The company had the
following transactions during the month of December, 2021:
December 3 Purchased a delivery truck for $23,000 cash.
December 12 Billed clients $18,000 for delivery services performed.
December 14 Paid dividends to shareholders, $4,500.
December 22
Paid cash for radio advertisement, $300.
December 24 Performed delivery services for clients and collected $3,400 cash.
December 31 Paid employee salaries for the month, $2,300.
Instructions: Prepare an income statement for the month ended December 31, 2021 based on the
information given above.
2
Transcribed Image Text:Question 4 CADB Company provides delivery services for its clients. The company had the following transactions during the month of December, 2021: December 3 Purchased a delivery truck for $23,000 cash. December 12 Billed clients $18,000 for delivery services performed. December 14 Paid dividends to shareholders, $4,500. December 22 Paid cash for radio advertisement, $300. December 24 Performed delivery services for clients and collected $3,400 cash. December 31 Paid employee salaries for the month, $2,300. Instructions: Prepare an income statement for the month ended December 31, 2021 based on the information given above. 2
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