Question 2 of 6
The following financial statement items are for Novak Corporation at year-end, July 31, 2025.
Operating expenses
$203,500
Interest payable
$1,000
Salaries and wages expense
60,440
Supplies expense
900
Unearned sales revenue
12,000
Dividends declared
12,000
Utilities expense
1,280
Depreciation expense
3,000
Equipment
42,180
Retained earnings, August 1, 2024
17,940
Accounts payable
6,180
Rent revenue
18,000
Service revenue
113,580
Income tax expense
5,000
Common stock
25,000
Cash
50,000
Gain on sale of equipment
1,500
Accounts receivable
17,080
Bank loan payable (due December 31, 2026)
20,000
Accumulated depreciation-equipment
6,000
Interest expense
1,000
Interest income
1,000
(a1)
Prepare an income statement for the year. Enter negative amounts using either a negative sign preceding the number e.g., -45 or
parentheses e.g., (45).
NOVAK CORPORATION
Statement of Income
