Question: income taxes are to be computer at the rate of 25% of the net income before taxes IMPORTANT NOTE: since income taxes are a percent of the net income you will want to prepare the income statements through the net income before tax line. The worksheet contains all the account and their balances which can then be transferred to the appropriate financial statement.

450.00 77,920.45 77,470.45 0.00 0.00 0.00 1110 Cash 0.00 18,800.00 0.00 19,894.00 0.00 1120 Accounts Receivable 1,094.00 0.00 371.40 0.00 371.40 1121 Allowance for Doubtful Accounts 0.00 0.00 0.00 221.00 5,083.00 0.00 1130 Prepaid Insurance 5,304.00 0.00 4,000.00 0.00 1140 Prepaid Rent 6,000.00 0.00 0.00 2,000.00 450.00 0.00 2,775.00 0.00 0.00 2,325.00 1150 Office Supplies 0.00 0.00 0.00 1,870.23 0.00 1211 Office Equip. 1,870.23 0.00 0.00 66.31 0.00 0.00 66.31 1212 Accum. Depr.-Office Equip. 0.00 206,520.50 0.00 1311 Computer Equip 206,520.50 0.00 0.00 0.00 6,550.68 0.00 6,550.68 1312 Accum. Depr.-Computer Equip 0.00 0.00 0.00 0.00 125,000.00 0.00 1411 Building Cost 125,000.00 0.00 357.01 0.00 357.01 1412 Accum. Depr.-Building 0.00 0.00 0.00 24,000.00 0.00 1510 Land 24,000.00 0.00 0.00 0.00 3,615.00 0.00 0.00 0.00 3,615.00 2101 Accounts Payable 0.00 0.00 0.00 0.00 0.00 0.00 2102 Advanced Payments 0.00 0.00 0.00 1,451.17 0.00 1,451.17 2103 Interest Payable 0.00 0.00 546.00 546.00 2105 Salaries Payable 0.00 0.00 0.00 2106 Income Taxes Payable 0.00 0.00 0.00 0.00 0.00 0.00 0.00 134.100.00 134,100.00 2201 Mortgage Payable 0.00 0.00 0.00 93.750.00 0.00 0.00 0.00 93,750.00 2202 Notes Payable 0.00 0.00 0.00 68.63 0.00 0.00 3100 Capital Stock 68.63 0.00 205,890.00 0.00 0.00 0.00 205,890.00 3110 Paid-in Capital in Excess of Par Value 3200 Retained Eamings 0.00 0.00 0.00 0.00 0.00 0.00 1,029.45 0.00 0.00 0.00 1,029.45 0.00 3300 Dividends 0.00 0.00 0.00 0.00 0.00 0.00 4100 Computer & Consulting Revenue 0.00 17,890.00 0.00 19,250.00 0.00 37.140.00 5010 Rent Expense 0.00 0.00 2,000.00 0.00 2,000.00 0.00 5020 Salary Expense 1,820.00 0.00 546.00 0.00 2,366.00 0.00 475.00 0.00 0.00 0.00 475.00 0.00 5030 Advertising Expense 5040 Repairs & Maint. Expense 1,115.00 0.00 0.00 0.00 1,115.00 0.00 5050 Oil & Gas Expense 840.00 0.00 0.00 0.00 840.00 0.00 0.00 5080 Supplies Expense 0.00 0.00 2,325.00 0.00 2,325.00 5090 Interest Expense 0.00 0.00 1.451.17 0.00 1,451.17 0.00 0.00 5100 Insurance Expense 0.00 0.00 221.00 0.00 221.00 5110 Depreciation Expense 0.00 0.00 6,974.00 0.00 6.974.00 0.00 0.00 0.00 371.40 0.00 5120 Bad Debt Expense 0.00 371.40 5130 Bank Expense 0.00 0.00 40.00 0.00 40.00 0.00 5140 Telephone Expense 0.00 0.00 240.00 0.00 240.00 0.00 5150 Income Taxes Expense 0.00 0.00 0.00 0.00