BACKGROUND Ima Founder starts her own business. NEWCO, on January 1. 2014 and sets up a corporation with 10.000 sham of common stock, with a par value of dollar 0.001 per share. She invests dollar 1.000 in NEWCO in exchange for the 10.000 shares of common stock. The excess of the par value of the common stock and what Ima contributed to the company for the common stock is recorded in the equity section of the balance sheet in an account called "Additional Paid in Capital". She subsequently raises dollar 50.000 in convertible notes, which she doses on March 1.2014 The notes accrue simple interest at 12 percentage per year. The maturity date of the notes is March 1 2017. at which time al principal and accrued interest are payable to the note holders, unless the notes are converted earlier in accordance with the note terms. No payments of principal or interest arc due on the notes until the maturity date of March 1.2017. From April 1 through December 31. 2014. Ima spends dollar 72.000 in payroll costs for developers to develop her first product, a web application used to book doctor appointments online Ai costs to develop the application are expensed as incurred. On March 1.2014. Ima enters into a lease agreement to rent office space for NEWCO. The terms of the lease include an upfront payment of a dollar 3.000 security deposit to guarantee timely rent payment and provide for repairing any damages to the office that are not considered 'normal wear and tear', but which is refundable upon completion of the lease term Rent is dollar 3.000 per month, which includes ALL costs, including use of the office space, phones, use of common facilities and all Internet connectivity. Rent is payable in arrears (that is. payable on the first day of each month following a month during which the office space is occupied) On September 1. 2014, she engages the services of a UX/VII consultant to provide a professional user experience in using the web application The consultant is paid dollar 5.000 monthly, payable on the first day of the month following the month the work is performed The UX/UI project is expected to take S months to complete. On December 1.2014. she sells 4 annual contracts of her web application to doctor offices at a price of dollar 60.000 per each contract per year The doctor offices have immediate use of the web application and are given 30 day payment terms Revenues on annual contract sales are recognized monthly (i.e., dollar 60.000 divided by 12 months = dollar 5.000 monthly) and any unrecognized revenues are recorded in a balance sheet account called "Deferred Revenues". ASSIGNMENT - Develop a balance sheet as of December 31. 2014 and an income statement for the year ended December 31.2014 for NEWCO based upon the above facts. Based on the balance sheet and income statement developed, answer the following questions