Refer to PA12-4. Required: Complete requirements 1 and 2 using the direct method. 2017 2016 Balance Sheet

Refer to PA12-4.

Required:

Complete requirements 1 and 2 using the direct method.

Transcribed Image Text:

2017 2016 Balance Sheet at December 31 $ 6,000 $4,000 Cash Accounts Receivable 1,000 1,750 Equipment 5,500 5,000 (1,500) Less: Accumulated Depreciation (1,250) $ 11,000 $9,500 $ 500 $1,000 Accounts Payable Wages Payable Long-Term Bank Loan Payable Contributed Capital Retained Earnings 500 750 1,500 500 5,000 5,000 3,500 2,250 $ 11,000 $9,500 Income Statement for 2017 $ 37,500 Lessons Revenue Wages Expense 35,000 Depreciation Expense Income Tax Expense 250 1,000 $ 1,250 Net Income