Ithaca Grooming Company LLC (IGC), based in Ithaca, NY. offers its clients shaving, hair-cutting, and general grooming services on a retail basis. They specialize in offering the most up-to-date services with the safest equipment. The balance sheet from December 31, 2018, is shown below along with the events that occurred during 2019 Ithaca Circoming Company LLC Halance Sheet Items As of Dexmber 31, 2018 Accounts payable $10,000 Accounts receivable $95.000 Accumulated depreciation $195,000 Advances from customers $22.000 Cash $16.000 Common stock S190,000 Bank loan sholm) $17,000 Plintaperty, dental) 490,00 Inlemesi payable Licenses (an angible asset) $18,000 Bank loan long-lem) $45,000 Patents an intangible asset) S6,000 Remained emings $53,000 Salary 58,000 Materials supplies $6,000 ( lice supplies $3,000 $4,000 The following events occurred during 2019: (a) Cash sales for the year were $245,000. (b) Old equipment, which had originally cost $13,000 and had a net book value of $3,000 as of the end of 2018, was scrapped and written off on the first day of business in 2019, (c) IGC paid $8,000 in cash for interest payments during the year (d) During the year, IGC acquired office supplies on credit for $32,000. (c) Early in 2019. IGC acquired all of the assets and liabilities of Lansing Spa Inc. for $81,000 cash. The assets included equipment valued at $70,000 (this equipment was carried on the books of Lansing Beauty Spa Inc. at a net book value of $30,000), accounts receivable of $31,000. accounts payable of $15.000, and a demand (short-term) loan of S5,000. (f) Credit sales for the year were $515,000. (8) During the year, IGC paid salaries to employees of S330,000 in cash. (h) IGC paid $63,000 cash for administrative expenses during the year (i) Cash collections from credit sales during the year were $620,000 IGC paid $40,000 cash towards the long-term loan during the , (k) Cash payments for purchases on credit during the year were $44.000 (1) Spent $140,000 in cash during 2019 on research and development activities related to new services the company could offer clients (m) At the end of the year, IGC owed the bank $1,000 in interest. (n) A total of $3,000 in office supplies remained on hand at the end of the year. (o) Depreciation on equipment for the year was calculated to be $50,000 (p) IGC's policy is to write off all intangible assets (such as patents) over 3 years using straight-line amortization. 2019 is the second year for amortizing the patents and licenses. (4) IGC sells gift cards that can be purchased and used for services in the future. During the year, customers used $11,000 of services with gift cards that had been purchased before 2019. These gift cards have no expiration date. (r) At the end of 2019, the accountant estimated that $2.000 of accounts receivable owed to the firm would not likely be collected (s) At the end of the year, IGC owed its employees a total of S6,000 in salaries, (s) At the end of the year, IGC owed its employees a total of $6,000 in salaries. (t) During the year, IGC sold new gift cards for a total of $13,000 in cash. (u) At the end of the year, the market value of the materials supplies was $5,000. (v) At the end of the year, the accountant estimated that IGC owed $27,000 in taxes. (w) On the last day of business in 2019, IGC sold a piece of equipment for $13,000 cash. This equipment had originally cost $25,000 and had accumulated depreciation of $18,000. (x) On the last day of business in 2019, IGC declared an $8,000 dividend, which will be paid sometime in 2020. Required: Using the Super-T approach discussed in class, prepare an income statement and balance sheet for presentation to IGC's shareholders' and bankers following generally accepted accounting principles which have been covered in the course to date. If there is something that you believe is unclear, write a note to the financial statements explaining how you decided to record the answer. Also prepare a cash flow statement following the "direct" approach. Submit your team's Super-T and the three statements in a single Excel spreadsheet file with each of these four items on a separate tab. Ithaca Grooming Company LLC (IGC), based in Ithaca, NY. offers its clients shaving, hair-cutting, and general grooming services on a retail basis. They specialize in offering the most up-to-date services with the safest equipment. The balance sheet from December 31, 2018, is shown below along with the events that occurred during 2019 Ithaca Circoming Company LLC Halance Sheet Items As of Dexmber 31, 2018 Accounts payable $10,000 Accounts receivable $95.000 Accumulated depreciation $195,000 Advances from customers $22.000 Cash $16.000 Common stock S190,000 Bank loan sholm) $17,000 Plintaperty, dental) 490,00 Inlemesi payable Licenses (an angible asset) $18,000 Bank loan long-lem) $45,000 Patents an intangible asset) S6,000 Remained emings $53,000 Salary 58,000 Materials supplies $6,000 ( lice supplies $3,000 $4,000 The following events occurred during 2019: (a) Cash sales for the year were $245,000. (b) Old equipment, which had originally cost $13,000 and had a net book value of $3,000 as of the end of 2018, was scrapped and written off on the first day of business in 2019, (c) IGC paid $8,000 in cash for interest payments during the year (d) During the year, IGC acquired office supplies on credit for $32,000. (c) Early in 2019. IGC acquired all of the assets and liabilities of Lansing Spa Inc. for $81,000 cash. The assets included equipment valued at $70,000 (this equipment was carried on the books of Lansing Beauty Spa Inc. at a net book value of $30,000), accounts receivable of $31,000. accounts payable of $15.000, and a demand (short-term) loan of S5,000. (f) Credit sales for the year were $515,000. (8) During the year, IGC paid salaries to employees of S330,000 in cash. (h) IGC paid $63,000 cash for administrative expenses during the year (i) Cash collections from credit sales during the year were $620,000 IGC paid $40,000 cash towards the long-term loan during the , (k) Cash payments for purchases on credit during the year were $44.000 (1) Spent $140,000 in cash during 2019 on research and development activities related to new services the company could offer clients (m) At the end of the year, IGC owed the bank $1,000 in interest. (n) A total of $3,000 in office supplies remained on hand at the end of the year. (o) Depreciation on equipment for the year was calculated to be $50,000 (p) IGC's policy is to write off all intangible assets (such as patents) over 3 years using straight-line amortization. 2019 is the second year for amortizing the patents and licenses. (4) IGC sells gift cards that can be purchased and used for services in the future. During the year, customers used $11,000 of services with gift cards that had been purchased before 2019. These gift cards have no expiration date. (r) At the end of 2019, the accountant estimated that $2.000 of accounts receivable owed to the firm would not likely be collected (s) At the end of the year, IGC owed its employees a total of S6,000 in salaries, (s) At the end of the year, IGC owed its employees a total of $6,000 in salaries. (t) During the year, IGC sold new gift cards for a total of $13,000 in cash. (u) At the end of the year, the market value of the materials supplies was $5,000. (v) At the end of the year, the accountant estimated that IGC owed $27,000 in taxes. (w) On the last day of business in 2019, IGC sold a piece of equipment for $13,000 cash. This equipment had originally cost $25,000 and had accumulated depreciation of $18,000. (x) On the last day of business in 2019, IGC declared an $8,000 dividend, which will be paid sometime in 2020. Required: Using the Super-T approach discussed in class, prepare an income statement and balance sheet for presentation to IGC's shareholders' and bankers following generally accepted accounting principles which have been covered in the course to date. If there is something that you believe is unclear, write a note to the financial statements explaining how you decided to record the answer. Also prepare a cash flow statement following the "direct" approach. Submit your team's Super-T and the three statements in a single Excel spreadsheet file with each of these four items on a separate tab