The following items and amounts were taken from Lonyear Inc.’s 2022 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 Lonyear Inc. for the year ended December 31, 2022.

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Accounts receivable Sales revenue Notes payable Accounts payable Service revenue Interest expense $ 84,700 123,192 438,458 115,131 7,818 64,618 $ 88,419 584,951 6,499 49,384 4,806 1,882 Cash Retained earnings Cost of goods sold Salaries and wages expense Prepaid insurance Inventory