Lang Company began operations on January 1, 2014, by issuing common stock for $34,000 cash. During 2014, Lang received $38,400 cash from revenue and incurred costs that required $48,400 of cash payments.

Required:

Prepare an income statement and a balance sheet for Lang Company for 2014, under each of the following independent scenarios.

a.

Lang is a promoter of rock concerts. The $48,400 was paid to provide a rock concert that produced the revenue. (Any losses and amounts to be deducted should be indicated with a minus sign.)

LANG COMPANY
Income Statement for 2014

LANG COMPANY
Balance Sheet as of 12/31/2014
Assets
Total assets
Equity
Total equity