Account Names Debit Cash $ 31,900 600 Supplies Deferred Revenue Salaries and Wages Payable Income Tax Payable Interest Payable Notes Payable (long-term) Common Stock Retained Earnings Service Revenue Salaries and Wages Expense 36,100 Supplies Expense 2,400 Interest Expense 0 Credit Further Information As reported on December 31 bank statement. Based on count, only $200 of supplies still exist. $ 3,500 of this amount, $3,000 was received for December lessons and $500 for January lessons. 0 Employees were paid $1,000 for 10 days of work through December 28. They have not yet been paid for work on December 29 and 30. 0 The company has paid last year's income tax but not this year's tax. 0 The company has not paid the $100 of interest owed on its notes payable for the current period. 12,000 This one-year note was taken out this year on December 1. 1,000 This amount was contributed for common stock in prior years. 3,000 This is the balance reported at the end of last year. 51,500 Most customers pay cash for lessons each time they are provided, but some customers pay in advance. Income Tax Expense 0 Totals $ 71,000 $ 71,000 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%.