Aunt Bea's Catering Service provides catering service for special occasions. During 2019, Aunt Bea performed $228,500 of catering services and collected $218,200 of cash from customers. Salaries earned by Aunt Bea's employees during 2019 were $49,900. Aunt Bea paid employees $45,100 during 2019. Aunt Bea had $1,200 of supplies on hand at the beginning of the year and purchased an additional $12,640 of supplies during the year. Supplies on hand at the end of 2019 were $2,820. Other selling and administrative expenses incurred during 2019 were $10,800.
Required:
1. Calculate revenue and expenses for 2019.
2. Prepare the 2019 income statement.
3. Describe the accounting principles used to prepare the income statement.