An analysis of cash records and account balances of Wells, Inc., for 2012 is as follows:

Required:
Determine the amounts that should be included on the 2012 income statement for
(1) Wages expense,
(2) Rent revenue, and
(3) Insuranceexpense.

Transcribed Image Text:

Account Balances Jan. 1, 2012 Account Balances Dec. 31, 2012 S3,000 5,000 Cash Received or Paid in 2012 $2,600 4,500 Wages Payable Unearned Rent. Prepaid Insurance.... Paid for wages. Received for rent... Paid for insurance ···· 100 120 $29,600 12,000 720