(1) Acquired $20,000 cash from the issue of common stock.
(2) Purchased $800 of supplies on account.
(3) Purchased land that cost $14,000 cash.
(4) Paid $800 cash to settle accounts payable created in Event 2.
(5) Recognized revenue on account of $10,500.
(6) Paid $3,800 cash for other operating expenses.
(7) Collected $7,000 cash from accounts receivable.

Prepare an income statement.

                                    Income statement

                                                                           Amount in $

Revenue                                                                10,500

Operating expenses                                              (3,800)

Net income                                                            6,700              

Explanation:

The income statement shows the revenue and expenses of an organization that gives rise to a net income or loss for the period under review.

Hence only the given revenue and expense items given would be considered.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o