The following items and amounts were taken from Familia Inc.’s 2022 income statement and balance sheet, the end of its first year of operations. 

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 Familia Inc. for December 31, 2022.

Transcribed Image Text:

Interest expense Interest payable Notes payable Sales revenue Equipment, net Depreciation expense $ 2,200 $54,700 3,200 4,100 700 Supplies Common stock 11,800 44,300 2,900 26,800 Supplies expense Cash Salaries and wages expense 900 15,600