Multiple Choice
Which of the following items would appear on the income statement?
Common stock……$120,000 Accounts payable…...$25,000
Cash……………….$116,640 Accounts receivable..$22,450
Supplies………… $ 1,500 Office equipment…...$23,300
Prepaid rent……....$ 3,200 Unearned revenue….$ 4,152
Service revenue.....$ 20,000 Utilities expense…....$ 422
Retained earnings...$ 30,000 Shaving equipment…$31,640
A) Common stock, service revenue, retained earnings, accounts payable, and unearned revenue.
B) Cash, supplies, prepaid rent, accounts receivable, office equipment, utilities expense, and shaving equipment.
C) Common stock, cash, supplies, prepaid rent, retained earnings, accounts payable, accounts receivable, office equipment, unearned revenue, and shaving equipment.
D) Service revenue and utilities expense.
E) Service revenue, unearned revenue, and utilities expense.
Correct Answer:

Verified
Correct Answer:
Verified
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