Front Row Entertainment Inc. Balance Sheets December 31, 2020 and 2019 Front Row Entertainment Inc. Income Statement For the year ended December 31, 2020 2020 2019 Revenues: Sales revenue $3,142,800 ASSETS Service revenue 636,000 Total revenues $3,778,800 Current assets: Expenses: Cash $ 30,322 $ 9,005 Artist fee expense $2,134,260 Accounts receivable, net 98,250 17,000 Rent expense 952,663 Prepaid expenses 133,400 57,200 Cost of goods sold 74,800 Supplies 2,200 3,700 Salaries and wages expense 345,100 Inventory 61,380 2,850 Depreciation expense 51,675 Total current assets $ 325,552 $89,755 Interest expense 98,087 Property, plant, and equipment: Income taxes expense 22,000 Building 1,857,250 0 Other expenses 26,550 Equipment 27,350 7,000 Total expenses $3,705,135 Accumulated depreciation (53,835) (2,160) Net income $ 73,665 Trademark 25,000 Total assets $2,181,317 $94,595 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 2,450 Salaries payable 2,500 Interest payable 40,917 Unearned sales revenue 1,780 Income taxes payable 550 Notes payable (short-term) 8,000 0 Total current liabilities $ 56,197 $49,010 Long-term liabilities: Notes payable $ 405,000 $25,000 Bonds payable, net 1,500,000 0 Less: Discount on bond payable Total long-term liabilities (109,530) $1,795,470 Equity: Preferred stock $ 150,000 Common stock 18,000 16,000 Paid-in capital in excess of par Additional Information: 1. Bonds payable of $1,500,000 were issued for $1,378,300 on July 1, 2020. During 2020, $12,170 of the discount on the bonds payable was amortized. In January 2020, a $380,000 long-term note payable was issued in exchange for a building. No buildings were sold during the year. $12,240 3,690 2. 2,250 28,650 2,180 3. On February 29, an $8,000 short-term note payable was issued in exchange for equipment. No equip- ment was sold during the year. 4. Cash dividends of $25,000 were declared and paid during 2020. 5. Common stock was issued for $40,000 cash during 2020. $25,000 6. Preferred stock was issued for $225,000 cash during 2020. 07. Treasury stock was purchased for $11,200 during 2020. Front Row reissued $4,800 of treasury stock in December 2020 for $6,600. Preferred stock 75,000 0 Common stock Treasury stock Retained earnings 38,000 0 1,800 0 53,250 4,585 Less: Treasury stock (6,400) 0 Total equity $ 329,650 $20,585 Total liabilities and equity $2,181,317 $94,595