Prepare income statement for the year ended December 31 in report form provided on #3 income statement tab.

2 CASPEAN HAIR STUDIO 4 Andrea and Max Caspean established a corporation called Caspean Hair Studio. 5 The company main objective is to provide a high-end hair treatments to exclusive clients in downtown Los Angeles, CA. 6 The company performs adjusting entries monthly, at the end of the month, Whereas, closing entries were recorded annually, on December 31st. 7 The company maintained and posted all the transactions to its appropriate ledger accounts. 8 The balances of each accunts are posted on #1, worksheet tab under unadjusted trial balance column (B and C 10 11 a. Accrued but unrecorded and uncollected service fees earned total S25,000 at December 31st, current year 12 b. The company determined that $15,000 of previously unearned services fees had been earned at December 31st, current year 13 c. Office supplies on hand at December 31 total $300 14 d. The company purchased all of its service equipment when it first began business. At that time, the estimated useful life of the equipment was six years (72 months) 5 The company depreciated its service equipment monthly based on six years or 72 months useful life. 16 e. The company prepaid its nine-month rent agreement on June 1st, current year 7 f The company prepaid its six-month insurance policy on December Ist, current year. 18 g. Accrued but unpaid salaries total $12,000 at December 31st, current year. 19 h. On September 1st, current year, the company borrowed S60,000 by signing an 8-month, 4 percent (annual) note payable. 20 The company accrued its interest payable monthly 21 The entire amount, plus interest, is due on March 1, 2018, next year. 22i. The company's accounting firm estimates that income taxes expense for the entire year is $50,000 23 The unpaid portion of this amount is due early in the next year ADJUSTING ENTRIES DATA CASPEAN HAIR STUDIO Income Statement cember 3 ear 10 12 13 15 16 17 18 19 20 21 Total Expenses Income before taxes ncome taxes expens 23 24 25 26 2 CASPEAN HAIR STUDIO 4 Andrea and Max Caspean established a corporation called Caspean Hair Studio. 5 The company main objective is to provide a high-end hair treatments to exclusive clients in downtown Los Angeles, CA. 6 The company performs adjusting entries monthly, at the end of the month, Whereas, closing entries were recorded annually, on December 31st. 7 The company maintained and posted all the transactions to its appropriate ledger accounts. 8 The balances of each accunts are posted on #1, worksheet tab under unadjusted trial balance column (B and C 10 11 a. Accrued but unrecorded and uncollected service fees earned total S25,000 at December 31st, current year 12 b. The company determined that $15,000 of previously unearned services fees had been earned at December 31st, current year 13 c. Office supplies on hand at December 31 total $300 14 d. The company purchased all of its service equipment when it first began business. At that time, the estimated useful life of the equipment was six years (72 months) 5 The company depreciated its service equipment monthly based on six years or 72 months useful life. 16 e. The company prepaid its nine-month rent agreement on June 1st, current year 7 f The company prepaid its six-month insurance policy on December Ist, current year. 18 g. Accrued but unpaid salaries total $12,000 at December 31st, current year. 19 h. On September 1st, current year, the company borrowed S60,000 by signing an 8-month, 4 percent (annual) note payable. 20 The company accrued its interest payable monthly 21 The entire amount, plus interest, is due on March 1, 2018, next year. 22i. The company's accounting firm estimates that income taxes expense for the entire year is $50,000 23 The unpaid portion of this amount is due early in the next year ADJUSTING ENTRIES DATA CASPEAN HAIR STUDIO Income Statement cember 3 ear 10 12 13 15 16 17 18 19 20 21 Total Expenses Income before taxes ncome taxes expens 23 24 25 26