Bee-Bop Music Service was organized by Whitney Dallas and other investors on January 1. 2018.

On that date the investors exchanged $136,000 cash for all of the stock of the company. On that same day, the corporation borrowed $110,000 from a local bank and signed a 5 -year note payable. The interest is payable each December 31. On January 1, 2018, the corporation purchased service supplies for $80,000. Operations started immediately.

At the end of 2018, the corporation had completed the following additional business transactions:

1) Performed services and billed customers for $200,500 of which $194,500 was collected in cash at the end of the year.

2) Used up $25,000 of service supplies while rendering services.

3) Paid $84,000 cash for other service expenses.

4) Paid $2,200 in annual interest expense on the note payable.

5) Paid $18,000 of income taxes in cash to the IRS.

Complete the following income statement and balance sheet

Revenues:

Service Revenue

Expenses:

Service Expenses

Interest Expense

Total Expense

Pretax Income

Income Expense

Net Income

Balance Sheet

ASSETS:

Cash

Accounts Receivable

Service Supplies

TOTAL ASSETS:

LIABILITIES:

Note Payable

Total Liabilities

STOCKHOLDERS' EQUITY:

Contributed Capital

Retained Earnings

Total Stockholders' Equity

TOTAL LIABILITIES & S.E.