Prepare an Income Statement, Balance Sheet, Statement of Stockholders Equity, Statement of Cash Flows for Seafood Cuisine Inc as of December 31, 2020 Although Mackenzie and Sophia had prepared their business tax return in April 2021 (for 2020 income taxes), they had not prepared a full set of financial statements using the accrual method of accounting Nevertheless, they kept all the necessary information in a spreadsheet, and Sophia was able to compile these cash flows and relevant accrual information by each income statement account into a columnar form, as follows Description 2020 (Cash Flows) REVENUES $182,000 Individual restaurant sales were cash transactions However, the girls had developed relationships with local businesses Sales to these businesses were on account The billings totaled $30,000, and were paid by the businesses within 15 days of the following month EXPENSES Food costs Once a week, Mackenzie sat down to write checks to pay bills By year end, only one week of food costs remained unpaid, totaling $9,000 $60,000 Supply costs These costs included miscellaneous items such as napkins and ice The items were generally paid out of petty cash $4,800 Utilities At the end of the year, one month of electricity, telephone, and water remained unpaid $8,000 Employee wages These costs were kept fairly low Mackenzie was an extraordinary baker and Sophia was an excellent chef For the simpler work, they only hire college students At the end of the year, one week of wages ($1,400) remained due $44,000 Licenses The new business license fee was paid early morning on April 1, 2020 This payment allowed the restaurant to begin operations immediately $900 Insurance A comprehensive insurance policy was purchased on April 1, 2020 The policy covered loss due to theft, fire, or storm damage The policy also covered business related risks such as lawsuits arising from customer injury while on the restaurant premises This policy covers three years $18,000 Income taxes The girls agreed to assume that income taxes would be paid on April 15, at a rate of 15 Owner compensation The girls treated the amount they withdrew for personal use as dividends $25,000 Depreciation Depreciation expense for all assets placed in service begins with the first full month of operation (e g nine months for those assets placed in service during 2020)

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Prepare an Income Statement, Balance Sheet, Statement of Stockholders Equity, Statement of Cash Flows for Seafood Cuisine Inc. as of December 31, 2020 Although Mackenzie

Prepare an Income Statement, Balance Sheet, Statement of Stockholders Equity, Statement of Cash Flows for Seafood Cuisine Inc. as of December 31, 2020

Although Mackenzie and Sophia had prepared their business tax return in April 2021 (for 2020 income taxes), they had not prepared a full set of financial statements using the accrual method of accounting. Nevertheless, they kept all the necessary information in a spreadsheet, and Sophia was able to compile these cash flows and relevant accrual information by each income statement account into a columnar form, as follows:

Description	2020 (Cash Flows)
REVENUES	$182,000
Individual restaurant sales were cash transactions. However, the girls had developed relationships with local businesses. Sales to these businesses were on account. The billings totaled $30,000, and were paid by the businesses within 15 days of the following month.
EXPENSES
Food costs Once a week, Mackenzie sat down to write checks to pay bills. By year-end, only one week of food costs remained unpaid, totaling $9,000	$60,000
Supply costs These costs included miscellaneous items such as napkins and ice. The items were generally paid out of petty cash.	$4,800
Utilities At the end of the year, one month of electricity, telephone, and water remained unpaid.	$8,000
Employee wages These costs were kept fairly low. Mackenzie was an extraordinary baker and Sophia was an excellent chef. For the simpler work, they only hire college students. At the end of the year, one week of wages ($1,400) remained due.	$44,000
Licenses The new business license fee was paid early morning on April 1, 2020. This payment allowed the restaurant to begin operations immediately.	$900
Insurance A comprehensive insurance policy was purchased on April 1, 2020. The policy covered loss due to theft, fire, or storm damage. The policy also covered business-related risks such as lawsuits arising from customer injury while on the restaurant premises. This policy covers three years.	$18,000
Income taxes The girls agreed to assume that income taxes would be paid on April 15, at a rate of 15%.
Owner compensation The girls treated the amount they withdrew for personal use as dividends.	$25,000
Depreciation Depreciation expense for all assets placed in service begins with the first full month of operation (e.g. nine months for those assets placed in service during 2020)