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The following items and amounts were taken from Linus Inc."s 2012 income statement and balance sheet.
Cash
$84,700
Accounts receivable
88,419
Retained earnings
123,192
Sales revenue
584,951
Cost of goods sold
438,458
Income taxes payable
6,499
Salaries and wages expense
115,131
Accounts payable
49,384
Prepaid insurance
7,818
Service revenue
4,806
Inventory
$64,618
Interest expense
1,882
Instructions
(a) In each, case, identify on the blank line whether the item is an asset (A), liability (L), stockholder"s equity (SE), revenue (R), or expense (E) item.
(b) Prepare an income statement for Linus Inc. for the year ended December 31, 2012.
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