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

Capital stock                               $ 14,000

Cash                                            38,500

Dividends                                       7,000

Fees earned                                321,300

Interest expense                             1,680

Land                                          105,000

Miscellaneous expense                      9,520

Notes payable                                21,000

Rent expense                                 33,600

Salaries expense                             91,000

Taxes expense                                25,200

Utilities expense                              44,800

Instructions: 1. Prepare an income statement for the year ending December 31, 2007.

2. Prepare a retained earnings statement for the year ending December 31, 2007.

3. Prepare a balance sheet as of December 31, 2007.

4. Prepare a statement of cash flows for the year ending December 31, 2007.