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Franklin Company began operations on January 1 , year 1 , by issuing common stock for $ 3 4 , 0 0 0 cash. During

Franklin Company began operations on January 1, year 1, by issuing common stock for $34,000 cash. During year 1, Franklin received $66,200 cash from revenue and incurred costs that required $49,200 of cash payments.
Prepare a GAAP-based income statement and balance sheet for Franklin Company for year 1 under the following scenario:
Franklin is in the car rental business. The $49,200 was paid to purchase automobiles. The automobiles were purchased on January 1, year 1, and have four-year useful lives, with no expected salvage value. Franklin uses straight-line depreciation. The revenue was generated by leasing the automobiles.Required information
[The following information applies to the questions displayed below.]
Franklin Company began operations on January 1, year 1, by issuing common stock for $34,000 cash. During year 1,
Franklin received $66,200 cash from revenue and incurred costs that required $49,200 of cash payments.
Prepare a GAAP-based income statement and balance sheet for Franklin Company for year 1 under the following scenario:
b. Franklin is in the car rental business. The $49,200 was paid to purchase automobiles. The automobiles were purchased on January
1, year 1, and have four-year useful lives, with no expected salvage value. Franklin uses straight-line depreciation. The revenue was
generated by leasing the automobiles.
Complete this question by entering your answer in the tabs below.
Income
Statement
Balance Sheet
Prepare an Income Statement.
FRANKLIN COMPANY
Income Statement for Year 1
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