The following items and amounts were taken from Linus Inc.s 2012 incom

QUESTION

The following items and amounts were taken from Linus Inc.s 2012 income statement and balance sheet.Instructions(a) In each, case, identify on the blank line whether the item is an asset (A), liability (L), stockholders equity (SE), revenue (R), or expense (E) item.(b) Prepare an income statement for Linus Inc. for the year ended December 31,2012.
Cash (A) Retained Earnings(SE) Cost of goods sold(E) Salaries and wages expense(E) Prepaid insurance(A) Inventory(A) Accounts receivable(A) Sales revenue(R) Income taxes payable(L) Accounts payable(L) Service revenue(R) Interest revenue (R) Income statement Sales revenue¦

951 Service revenue 4,806 Total Revenue(A) 589,757 Cost of goods sold 438,458 Salaries and wages expense 115,131 Interest expense 1,882 Total Expenses(B) 555,471 Net Income(A-B) 34,286

ANSWER:

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