The following items and amounts were taken from Lonyear Inc.'s 2017 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, 2017.

Transcribed Image Text:

84,700 Accounts receivable 88,419 Sales revenue Notes payable Accounts payable Service revenue Interest expense -Cash _ Retained earnings Cost of goods sold Salaries and wages expense Prepaid insurance Inventory 23,192 438,458 115,131 584,951 6,499 49,384 4,806 1,882 7,818 64,618 _