The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, the beginning of the current year. Mr. Thompson invested an additional $25,000 in the business during the year.AccountsAmountAccountsAmountAccounts payable$2,000Miscellaneous Expense$450Accounts receivable10,340Office Expense420Cash21,420Supplies1,670Fees earned73,980Wages Expense30,640Land47,000Drawing16,570Building157,630 Required: Prepare an income statement for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income statement.Labels Expenses For the Year Ended March 31 Amount Descriptions Net income Net loss Total expenses

Total expenses = $450 + $420 + $30,640 Total expenses = $31,510

Answered: The assets and liabilities of Thompson…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, the beginning of the current year. Mr. Thompson invested an additional $25,000 in the business during the year.

Accounts	Amount	Accounts	Amount
Accounts payable	$2,000	Miscellaneous Expense	$450
Accounts receivable	10,340	Office Expense	420
Cash	21,420	Supplies	1,670
Fees earned	73,980	Wages Expense	30,640
Land	47,000	Drawing	16,570
Building	157,630

Required:

Prepare an income statement for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income statement.