The following items and amounts were taken from Linus Inc.'s 2012 income statement and balance sheet.

Instructions(a) In each, case, identify on the blank line whether the item is an asset (A), liability (L), stockholder's equity (SE), revenue (R), or expense (E) item.(b) Prepare an income statement for Linus Inc. for the year ended December 31,2012.

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