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Question 1: Morrill Law Offices had the following transactions in November, 2012. Prepare income statement for Morrill Law Offices for the month ending November 30, 2012.
1. Morrill Law Offices sold $210,000 worth of services. Two-thirds was collected in November with the remainder collected in December.
2. The company paid wages of $53,000 to its employees.
3. The company paid utilities of $750 to Brenton Electric Company.
4. The company's prepaid rent account expired in the month of November. Morrill Law Offices purchased an additional 3 months of rent on October 1, 2012 for $3,600. The landlord did not increase rent for Morrill Law Offices.
5. A declaration of dividends for $3,200 occurred on November 1, 2012.
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