Question 2

1. Using the list of accounts below, prepare an Income Statement and a Balance Sheet

Accounts Receivable $ 5,000

Accounts Payable 10,000

Bank Loan, 10- year 40,000

Building, net 72,500

Cash 22,000

Common Shares 80,000

Depreciation Expense Bldg 2,500

Depreciation Expense Truck 4,100

Service Revenue 53,000

Note Payable 3-month 13,000

Prepaid Rent 20,000

Office Supplies 500

Salaries Expense 6,000

Supplies 8,000

Truck, net 45,000

Utilities Expense 900