Q1) Income Statement Preparation:
Following selected information is taken from records of Beckstrom Corporation.
|
Accounts payable
|
$35,000
|
|
Accounts receivable
|
65,000
|
|
Advertising expense
|
15,000
|
|
Cash
|
19,500
|
|
Supplies expense
|
46,000
|
|
Rent expense
|
|
|
Utilities expense
|
3,000
|
|
Income taxes (30% of income before taxes)
|
?
|
|
Miscellaneous expense
|
4,400
|
|
Owners' equity
|
140,000
|
|
Salaries expense
|
61,000
|
|
Fees (revenues)
|
384,000
|
1. Create income statement for year ended December 31, 2006. (Suppose that 7,500 shares of stock are outstanding.)