FINAL ANSWERS Income statement and balance sheet versions B and D-2 9.44.52 AM

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Income statement for the six month period ending December 31, 2015Services income220,000Dividend income from investments3,500less: expensesSalaries paid to owners(80,000)Wages paid to employees(50,000)Rent(10,000)Travel costs to customer locations(3,500)Book depreciation(8,000)Interest to banks(7,500)Interest to shareholder(7,500)Cleaning(1,200)Utilities(2,500)Website costs(3,500)Net income for the year49,800
Balance sheet at December 31, 2015This is Balance Sheet tCash14,300Accounts receivable17,500Investments31,000Equipment42,500less: accumulated depreciation(8,000)less: LiabilitiesAccounts payable- wages to employees(9,000)- rent(2,500)- interest to shareholder(6,000)Loans from shareholder(20,000)Loans from bank (guaranteed by owner)(20,000)Amounts received from customers in advance(25,000)Net assets14,800Equity50,000Retained earnings49,800less: distribution(85,000)Net equity14,800
to be used for Schedule L
Book to tax reconciliationBook incomeDebitCreditServices income220,000(17,500)25,000Dividend income from investments3,500less: expensesSalaries paid to owners(80,000)Wages paid to employees(50,000)Rent(10,000)

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Term
Fall
Professor
Grud
Tags
Balance Sheet, Depreciation, Income Statement, Expense, Generally Accepted Accounting Principles, Tobin

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