7-1 APPLICATION PROBLEM Preparing an income statement A form is given below. The following information is obtained from the work sheet of Len's Laundry for the month ended August 31 of the current year. INCOME STATEMENT BALANCE SHEET ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT 623300 Sales 12 Advertising Expense s Insurance Expense 4 Miscellaneous Ex pense 80000 31500 45000 149500 13 14 15 16 Supplies Expense Utilitles Expense 1 326000 623300 1043600 746300 7 17 29 73 00 297300 18 623300 623300 1043600 1043600 19 20 21 s Net Income t9 21 Instructions: 1. Prepare an income statement for the month ended August 31 of the current year. 2. Calculate and record the component percentages for total expenses and net income. Round percentage calculations to the nearest 0.1%. 1. Application Problem 7-1 Note: Please list account titles in the order shown on the work sheet. % of sales