Buy Wednesday TAX-4: Hanks Company The Hanks Company has the following income statement for the year ended December 31, 2016: Subscription revenue Interest revenue on municipal bonds Total revenues $250,000 4.500 254,500 Expenses: Subscription costs Wages Rent expense Depreciation on equipment Insurance expense Total expenses Income before tax 120,000 30,000 15,000 45,000 8.000 218.000 36,500 Hanks Company has the following partially completed comparative balance sheets as of December 31: 2016 2015 S 92,775 19,250 3,000 2,500 $ 10,000 19,250 2,800 3,200 Assets Cash Tax refund receivable Prepaid rent Prepaid insurance Municipal bonds: Cost and fair value Interest receivable Equipment (net) Deferred tax asset -noncurrent Total assets 50,000 2,250 45,000 ???? ???? 50,000 1,125 90,000 26,825 203,200 Liabilities and Owners' Equity Subscriptions received in advance Wages payable Taxes payable Deferred tax liability-noncurrent Common stock - par value Common stock - capital in excess of par Retained earnings Total liabilities & owners' equity 9,000 2,400 ???? ???? 30,000 20,000 ????? ???? 7,500 2,000 0 16,350 30,000 20,000 127,350 203,200 Buy Wednesday TAX-4: Hanks Company The Hanks Company has the following income statement for the year ended December 31, 2016: Subscription revenue Interest revenue on municipal bonds Total revenues $250,000 4.500 254,500 Expenses: Subscription costs Wages Rent expense Depreciation on equipment Insurance expense Total expenses Income before tax 120,000 30,000 15,000 45,000 8.000 218.000 36,500 Hanks Company has the following partially completed comparative balance sheets as of December 31: 2016 2015 S 92,775 19,250 3,000 2,500 $ 10,000 19,250 2,800 3,200 Assets Cash Tax refund receivable Prepaid rent Prepaid insurance Municipal bonds: Cost and fair value Interest receivable Equipment (net) Deferred tax asset -noncurrent Total assets 50,000 2,250 45,000 ???? ???? 50,000 1,125 90,000 26,825 203,200 Liabilities and Owners' Equity Subscriptions received in advance Wages payable Taxes payable Deferred tax liability-noncurrent Common stock - par value Common stock - capital in excess of par Retained earnings Total liabilities & owners' equity 9,000 2,400 ???? ???? 30,000 20,000 ????? ???? 7,500 2,000 0 16,350 30,000 20,000 127,350 203,200