In 2021,during its first year of operations, Watson Company incurred the following events:

a.Watson Company performed services for its customers and billed them $62,000.

b.Watson collected, in cash, $51,000 of the amount billed its customers.

c.Watson incurred $39,000 of operating expenses on account.

d.Watson paid, in cash, $31,000 of the accounts payable for operating expenses.

e.Watson issued common stock and received $40,000 in cash.

f.The company purchased land for $21,000 in cash.

Answer the following questions and show calculations

1. What will be the amount of revenue will Watson have on its Income Statement?

2. What will be Watsons Net Income for the year?

3. What is Watsons balance in its Cash account at the end of the year?

4. Why is the amount of Cash different from its Net Income for the year?