The adjusted trial balance of Parsons Company at December 31, 2020, includes the following accounts: Common Stock $15,600, Dividends $7,000, Service Revenue $37,000, Salaries and Wages Expense $16,000, Insurance Expense $2,000, Rent Expense $4,000, Supplies Expense $1,500, and Depreciation Expense $1,300. Required:
Prepare an income statement for the year.

$12,200

Explanation:

Preparation of an income statement for the year.

PARSONS COMPANY Income Statement

For the year ended December 31,2020

Service Revenue $37,000

Expenses:

Salaries and wages$16,000

Insurance Expense$2,000

Rent Expense$4,000

Supplies Expense$1,500

Depreciation Expense$1,300

Total Expenses $24,800

Net Income $12,200

($37,000-$24,800)

Therefore income statement for the year is $12,200

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know