1. Develop a financial income statement and balance sheet by combining the chart of account items on the DPSystems income statement and balance sheet in Tables 39 and 310.

TABLE 3-9 DPSystems Income Statement DPSystems Income Statement January 1 through December 31, 2007, Cash Basis $ 2,580.00 11,130.00 44,090.00 57,800.00 6,450.00 64,250.00 394.18 158.77 552.95 560.36 78.15 108.70 540.00 3,501.33 4,041.33 1,390.60 1,492.30 1,014.17 1,129.07 395.99 4,031.53 1,881.96 Ordinary Income/Expense Income 4200 Services 4210. Domain Registrations 4220 Domain Hosting 4230. Website Maintenance Total 4200 - Services 4500 Labor Total Income Expense 5080 - Office Supplies 5082 Printer Supplies 5080 - Office SuppliesOther Total 5080 - Office Supplies 5110 - Computer Accessories 5120 . Postage and Delivery 5130 PDA Accessories 5260. Utilities 5261 . Internet 5262 Wireless Phone Total 5260 Utilities 5330 Promotions 5390 Travel & Entertainment 5391-Entertainment 5392-Meals 5393. Travel 5394. Gas Total 5390 Travel & Entertainment 5580 Donations 5640 Professional Fees 5642 Accounting 5643. Cleaning Services Total 5640 Professional Fees 5700 Software 5701 Desktop Software 5702. PDA Software Total 5700. Software 5710 - Hardware 5720 Bank Service Charges 5760. Bad Debt 5800 . Dues and Subscriptions 6050 - Contract Services 6110 Automobile Expense 6130. Cash Discounts 6180 . Insurance 6260 Printing and Reproduction 6300 Repairs 6340 Automobile Repairs Total 6300 Repairs 6500. Payroll David Sobelman 6510 Payroll Taxes 6700 Domain Registrations 6710. Domain Hosting Total Expense Net Ordinary Income Other Income/Expense Other Income 8100. Interest Income Total Other Income Net Other Income Net Income 954.00 1,528.00 2,482.00 107.56 99.35 206.91 108.09 78.90 244.00 142.45 80.00 34.88 3.00 256.00 13.01 553.98 553.98 15,000.00 1,147.50 1,691.80 550.20 35,238.30 29,011.70 19.69 19.69 19.69 $29,031.39 TABLE 310 DPSystems Balance Sheet DPSystems Balance Sheet As of December 31, 2007, Cash Basis December 31, 2007 $ 7,242.93 4,695.29 1,416.99 13,355.21 (50.00) (50.00) 410.00 410.00 (19,865.97) 1,105.61 3,135.87 4,241.48 12,522.43 1,498.40 930.98 810.00 3,902.62 4,039.94 ASSETS Current Assets Checking/Savings 1030 Money Market 1031. Checking 1033 Barter Total Checking/Savings Accounts Receivable 1035 Accounts Receivable Total Accounts Receivable Other Current Assets 1040. Undeposited Funds Total Other Current Assets Total Current Assets 13,715.21 Fixed Assets 1400 Depreciation Allowance 1500. Computers 1505 - Hardware Parts 1500 - ComputersOther Total 1500 - Computers 4,241.48 1520 - Furniture 1550. Monitors 1560. Printers 1570 - PDA 1590. Misc Assets Total Fixed Assets Other Assets 1700. Organization Expense 1705 . Accumulated Amortization Total Other Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Credit Cards 2200 American Express Total Credit Cards Other Current Liabilities 2350 Payroll Withholdings 2354 State W/H Payable Total 2350 Payroll Withholdings Total Other Current Liabilities Total Current Liabilities Total Liabilities Equity 3100. Retained Earnings 3200 David's Equity 3210 David's Equity Investments 3230. David's Equity Draws 3200 David's Equity-Other Total 3200 David's Equity Net Income Total Equity TOTAL LIABILITIES & EQUITY 620.00 (310.00) 310.00 18,065.15 1,391.26 1,391.26 600.00 600.00 600.00 1,991.26 1,991.26 21,624.39 2,993.46 (37,455.73) (119.62) (34,581.89) 29,031.39 16,073.89 $18,065.15