Rescue Records needs rescuing. The downloading of songs and other media are killing its business. The owners of Rescue want
to know if they made a net income or a net loss for the year ended December 31. Given the following account balances, prepare
an income statement for Rescue similar to Figure 3.1 “Income Statement”.
Advertising Expense $4,600
Salary Expense $25,470
Cost of Goods Sold $109,000
Sales Revenue $197,000
Income Tax Expense $3,800
Loss on Sale of Stock $12,090
Rent Expense $35,000
