[Peggy75]

Please confirm that I have accurately indicated items that go on an income statement (or not). I have included items I am not quite sure on:

*Accounts receivable: I believe this goes on the balance sheet, but some research I have done suggests that it gets split on the income statement. However, there is no further info reference this account on the items provided and an 'income from goods sales' has been provided elsewhere, which I will put in income statement (thus I don't think A/R goes on income statement). But have done some reading on accrued income so now I am not sure if A/R goes on income statement or not

*accounts payable: NO (as it is on the balance sheet) but would like to confirm

*Interest received: YES on income statement

*wages and salaries: it doesn't say 'expenses' or owing/payable (which I believe goes on balance sheet) but YES, I think it belongs on income statement

*dividend paid: NO, I have read that dividends are not an expense thus do not go on income statement

*retained earnings (beginning): I have read about this a lot but am still not sure... a value for retainined earnings is provided but not sure if I need to include it in income statement

*captial contributions (beginning): NO - as not earned by business

*loan: NO, because it doesn't increase owners equity, it increases assets

*inventory: I thought NO originally, but read too much then confused myself

Simple confirmation only is requested - thank you for your time.

Peggy

[pready]

Accounts Receivable is a balance sheet item.

Wages and Salaries Expense is an income statement item. If just wages and salaries it will be an expense unless more information is given.

Retained Earnings is a balance sheet item and a statement of owners equity item.

Loan is a payable and will be in the liabilities section of the balance sheet.

Inventory is a current asset and will be on the balance sheet.

The rest of your acocunts are correct.

[Peggy75]

Thank you so much Pready... off I go then to calculate profit!

Appreciate your time very much,

Peggy