On October 1, 2017 An investor purchased 20 shares of stock (100%) of ABC Co. for $1,500,000. The 1,500,000 was paid directly to ABC in exchange for common stock. The par value of the stock was $10,000/share. ABC Company purchased equipment for $180,000; paying $80,000 cash and financing (through a long-term note) the remaining portion.

ABC had the following transactions after 10/1/2017:

Sold and delivered services for $520,000. $80,000 cash received and the remaining will be received in 2018

ABC was given $30,000 of cash for future services. The services are to be provided to the client in 2018.

ABC paid $25,000 for advertising that will be aired immediately after payment. ABC paid $30,000 for supplies. Cash was paid for both.

Paid $80,000 in cash for salaries for 2017. The end of the year was in the middle of the week and the total unpaid salary expense for 2017 was $5,000. This additional $5,000 will not be paid until first week of 2018 but represents expense of 2017. The total salary expense for 2017 is $85,000

ABC sold more services for $50,000. $20,000 of the $50,000 was received immediately in cash. The remaining portion is expected to be paid in February of 2018. ABC had $500 of interest expense that it did not pay but owed at the end of the year. Round all numbers to the nearest dollar.

ABC declared and paid a dividend of $3,000. Tax rate is 20%

Prepare Balance Sheet and Income Statement in good form for the year-ended 12/31/2017.