Question: After its second year of operations, the following amounts were taken from the accounting records of Lisko Services, Inc., as of December 31, 2008. Lisko Services began its operations on January 1, 2007.

Capital stock                                        $ 35,000

Cash                                                         ?

Dividends                                               21,000

Fees earned                                          355,740

Interest expense                                       2,240

Land                                                    196,000

Miscellaneous expense                                9,800

Notes payable                                         28,000

Rent expense                                          39,200

Salaries expense                                      98,000

Taxes expense                                        28,000

Utilities expense                                      50,400

Instructions: 1. Prepare an income statement for the year ending December 31, 2008.

2. Prepare a retained earnings statement for the year ending December 31, 2008. (Note: The retained earnings at January 1, 2008, was $108,500.)

3. Prepare a balance sheet as of December 31, 2008.

4. Prepare a statement of cash flows for the year ending December 31, 2008.