DPSystems Income Statement January 1 through December 31, 2007, Cash Basis Ordinary Income/Expense Income 4200 Services 4210 Domain Registrations $ 2,580.00 4220 Domain Hosting 4230 Website Maintenance Total 4200 Services 4500 - Labor Total Income Expense 5080 Office Supplies 11,130.00 44,090.00 57,800.00 6,450.00 64,250.00 5082 Printer Supplies 5080 Office Supplies Other Total 5080 Office Supplies 5110 Computer Accessories Postage and Delivery PDA Accessories 5120 5130 5260 Lilities 5261 5262 394.18 158.77 552.95 560.36 78.15 108.70 540.00 3,501.33 4,041.33 Internet Wireless Phone Total 5260 Utilities 5330 Promotions 5390 Travel & Entertainment 5391-Entertainment 5392-Meals 5393 Travel 5394 - Gas Total 5390 Travel & Entertainment 5580 Donations 5640 Professional Fees 5642 Accounting 5643 Cleaning Services Total 5640 - Professional Fees 1,390.60 1,492.30 1,014.17 1,129.07 395.99 4,031.53 1,881.96 954.00 1,528.00 2,482.00 5700 Software 5701 Desktop Software 107.56 5702 PDA Software 99.35 Total 5700 Software 206.91 5710 Hardware 108.09 5720 Bank Service Charges 78.90 5760 Bad Debt 244.00 5800 Dues and Subscriptions 6050 Contract Services 6110 Automobile Expense 6130 Cash Discounts 6180 Insurance 6260 Printing and Reproduction 142.45 80.00 34.88 3.00 256.00 13.01 Repairs 6300 Repairs 6340 - Automobile Repairs Total 6300 6510-Payroll Taxes 6700-Domain Registrations 6710-Domain Hosting 6500-Payroll-David Sobelman Total Expense Net Ordinary Income Other Income/Expense 553.98 553.98 15,000.00 1,147.50 1,691.80 550.20 35,238.30 29,011.70 Other Income 8100-Interest Income Total Other Income Net Other Income Net Income 19.69 19.69 19.69 29,031.39 TABLE 3-10 DPSystems Balance Sheet DPSystems Balance Sheet As of December 31, 2007, Cash Basis December 31, 2007 ASSETS Current Assets Checking/Savings 1030 Money Market $ 7,242.93 1031 Checking 4,695.29 1,416.99 1033 Barter Total Checking/Savings Accounts Receivable 1035 Accounts Receivable Total Accounts Receivable Other Current Assets 1040 Undeposited Funds Total Other Current Assets Total Current Assets 13,715.21 13,355.21 (50.00) (50.00) 410.00 410.00. Fixed Assets 1400 1500 Depreciation Allowance Computers (19,865.97) 1505 Hardware Parts 1.105.61 1500 Computers-Other Total 1500 Computers 4,241. 3,135.87 4,241.48 1520 Furniture 1550 Monitors 1560 Printers 1570 PDA 1590 Misc Assets 12,522.43 1,498.40 930.98 810.00 3,902.62 Total Fixed Assets Other Assets 1700 Organization Expense 1705 Accumulated Amortiza Total Other Assets 4,039.94 620.00 (310.00) 310.00 18,065.15 TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Credit Cards 2200 American Express 1,391.26 Total Credit Cards. 1,391.26 Other Current Liabilities 2350 Payroll Withholdings 2354 State W/H Payable Total 2350 Payroll Withholdir Total Other Current Liabilities Total Current Liabilities Total Liabilities 600.00 600.00 600.00 1,991.26 1,991.26 Equity 3100 Retained Eamings 21,624.39 3200 David's Equity 3210 David's Equity Investn 2,993.46 3230 David's Equity Draws 3200 David's Equity- (37.455.73) Other Total 3200 David's Equity Net Income (119.62) (34,581.89) 29,031.39 Total Equity 16,073.89 TOTAL LIABILITIES & EQUITY S 18.065.15 Case Study 1. Develop a financial income statement and balance sheet by combining the chart of account items on the DPSystems income statement and balance sheet in Tables 3-9 and 3-10. 2. List the chart of account numbers and major categories used in DPSystems' accounting system. 3. How would a hotel chain use a property management system to incorporate items from individual hotels into their corporate financial statements