Account Names Debit Cash $ 31,100 Supplies 440 Deferred Revenue Salaries and Wages Payable Credit Further Information. As reported on December 31 bank statement. Based on count, only $120 of supplies still exist. of this amount, $2,200 was received for $ 2,620 December lessons and $420 for January lessons. 0 0 2,200 Employees were paid $2,800 for 10 days of work through December 28. They have not yet been paid for work on December 29 and 30. The company has paid last year's income tax but not this year's tax. The company has not paid the $100 of interest owed on its notes payable for the current period. This one-year note was taken out this year on December 1. This amount was contributed for common i stock in prior years. This is the balance reported at the end of last year. Most customers pay cash for lessons each 50,620 time they are provided, but some customers pay in advance. Employees worked through December 30 but did not work on December 31. This is the cost of supplies used through November 30. The company has not paid the $100 of interest owed on its notes payable for the current period. The company has an average tax rate of 30%. Income Tax Payable Interest Payable Notes Payable (long-term) 12,000 Common Stock 1,000 Retained Earnings Service Revenue Salaries and Wages Expense 35,300 Supplies Expense 1,600 Interest Expense 0 Income Tax Expense Totals $ 68,440 $ 68,440