Income statement

ng Cycle Review 11-1 Ayayai Corp.s balance sheet at December 31, 2016, is presented below. AYAYAI CORP Balance Sheet December 31, 2016 Cash Accounts receivable Allowance for doubtful accounts $26,000 Accounts payable 46,000 Common stock ($10 par) (1,900) Retained earnings $27,000 75,000 138,650 4,800 44,500 144,000 Land Buildings Accumulated depreclation-buildings (22,750) $240,650 $240,650 During 2017, the following transactions occurred. 1. on January 1, 2017, Ayayal issued 1,300 shares of $49 par, 8% preferred stock for $66,300. 2. On January 1, 2017, Ayayal also issued 840 shares of the $10 par value common stock for $20,500. 3. Ayayail performed services for $322,000 on account. 4. On April 1, 2017, Ayayal collected fees of $37,000 in advance for services t be performed from April 1, 2017, to March 31, 2018. s. Ayayal collected $285,000 from customers on account. 6. Ayayai bought $36,000 of supplies on account. 7. Ayayai pald $30,000 on accounts payable. 8. Ayayai reacqui 9. Paid other operating expenses of $180,000. red 470 shares of its common stock on June 1, 2017, for $27 per share. 10. On December dividend 31, 2017, Ayayal declared the annual preferred stock dividend and a $1.00 per share on the outstanding common stock, all payable on January 15, 2018. 11. An account receivable of $1,900 which originated in 2016 is written off as uncollectible Adjustment data: 1. 2. 3. 4. A count of supplies indicates that $5,900 of supplies remain unused at year-end Recorded revenue from item 4 above. The allowance for doubtful accounts should have a balance of $3,400 at year end. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $7,500 Te income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) S- Prepare an income statement. AYAYAI CORP