Andover Income Statement for Year ended December 31, Year 0 \begin{tabular}{l|r|} Revenues \\ Sales Revenue \\ Expenses & $190,500 \\ Cost of Goods Sold & (110,500) \\ \hline R \& D Expense & (10,000) \\ \hline Sales Commissions & (2,000) \\ Marketing Expense & (5,000) \\ \hline Insurance Expense & (6,000) \\ \hline Other Operating Expenses & (27,500) \\ \hline Income from Operations & $29,500 \\ \hline Interest Income & 500 \\ \hline Income before Taxes & 30,000 \\ \hline Income Tax Expense & (9,500) \\ \hline Net Income & 20,500 \\ \hline \end{tabular} As of December 31 , Year 0 *Assume these notes represent non-interest-bearing loans from owners, due in 5 years. ADTUSTING ENTRTES Salaries Expense BB \begin{tabular}{l|l} & \multicolumn{2}{c}{ Supplies } \\ \hline & \\ \hline EB & \\ \hline & \end{tabular}