Problem -
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . $ 143,000
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . 95,000
Advertising expense . . . . . . . . . . . . . . . . . . . . . . 14,500
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,000
Supplies expense . . . . . . . . . . . . . . . . . . . . . . . . 31,500
Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000
Utilities expense . . . . . . . . . . . . . . . . . . . . . . . . . 2,500
Income taxes (30% of income before taxes) . . . . ?
Miscellaneous expense . . . . . . . . . . . . . . . . . . . . 5,100
Owners' equity . . . . . . . . . . . . . . . . . . . . . . . . . . 215,000
Salaries expense . . . . . . . . . . . . . . . . . . . . . . . . 78,000
Fees (revenues) . . . . . . . . . . . . . . . . . . . . . . . . . 476,000
1. Prepare an income statement for the year ended December 31, 2009. (Assume that 11,000 shares of stock are outstanding.)