Liabilities and Stockholders' Equity: Accounts payable Deferred revenues $5,000 $6,000 1,000 2,000 Long-term note payable 10,000 10,000 Less: Discount on note payable (800) (1,000) Common stock Retained earnings 12,000 6,000 4,800 3,500 Total liabilities and stockholders' equity $32,000 $26,500 Income Statement For the year ended December 31, 2011 Revenues Cost of goods sold Depreciation expense Interest expense $42,000 (24,000) (2,000) (3,000) Bad debt expense (2,000) Other expense (including income taxes) (9,000)