00:01
The question is basically asking you to make sure you know account titles and where they go on the financial statements.
00:13
So it can be confusing and there can be a lot of account titles that sound similar.
00:19
So the key is to go slow and look at each one to determine which go on the income statement.
00:26
So the income statement has revenue and then it has experience.
00:40
Expenses.
00:46
It has gains and losses, and then it'll have net income.
01:00
So those are the things we're looking for if we're trying to create the income statement.
01:06
So a balance sheet, though, however, has assets, liabilities, and equity, sorry, equity, and those are the main sections there and then you have a retained earnings statement.
01:36
I'll do that as re that has retained earnings, dividends, and that's about it for retained earnings.
01:53
Okay, so of the items listed, you're looking for anything that has the word expense.
01:59
That is most likely in the income statement right here.
02:02
So right off the bat, that would be advertising expense and depreciation expense.
02:08
And depreciation expense, i'll just write these down, add expense, depreciation expense, insurance expense, rent expense, salaries and wages expense, and supplies expense.
03:01
You're then looking for revenue, which is near the bottom, it is service revenue, and then gains and losses are not included in this list, and net income is up to you, to determine where you take service revenue, which is the $138 ,000, and you subtract all of these expenses...