Prepare an income statement and statement of retained earnings for the company

a. Issued stock for cash, $10,000

b Paid $3,000 cash for advanced payment of three months rent (November, December and January).

c. Purchased supplies on account, $2,000.

d. Received $12,000 cash for services to be completed in the future.

e. Borrowed $10,000 from Madoff Savings and Loan on a 5-year promissory note (ignore interest expense for this problem.)

f. Purchased equipment for $10,000.

g Performed $6,000 of the services in transaction (d).

h. An inventory at year-end reveals that there is $1,300 of supplies remaining.

i. Regular weekly salaries are $10,000. Salaries are paid on Friday for the five-day week which ended the previous Friday. 12/31 is a Wednesday.

j. Recorded rent expense for year ended 12/31 (see transaction b)

k. Recorded depreciation expense of $8,000 for the equipment purchased in (f).