Skousen Exploration Corporation was formed on January 1, 20X3. The company was formed by Cliff and Chris Skousen with the goal of conducting geophysical support services related to natural gas drilling operations in the Uinta Basin region of eastern Utah. The companys initial capitalization consisted of shareholder investments of $1,000,000 and an additional bank loan of $750,000. During the first year of operation, the company purchased land, buildings, and equipment in the amount of $200,000, $500,000, and $300,000, respectively.

During 20X3, the company signed contracts to deliver consulting services with a total value of $2,500,000. By years end, $1,600,000 of services had been provided and billed under these agreements. The remaining $900,000 of work will not be performed until 20X4. All amounts billed had been collected during 20X3, with the exception of Decembers billings in the amount of $125,000. The Skousens are quite confident that the December billing will be collected in the normal course of business in early 20X4. Expenses paid during 20X3 included rent ($140,000), wages ($780,000), interest ($75,000), and taxes ($215,000). In addition, the company had incurred rent ($10,000), wages ($30,000), and interest ($6,000) related to 20X3 activity that was not yet paid as of the end of 20X3. Skousen Exploration declared and paid dividends to shareholders in the amount of $75,000 during 20X3. Skousen also repaid $50,000 of the original bank loan.

(a) Prepare an income statement for Skousen Exploration Corporation for the year ending December 31, 20X3.

(b) Prepare a statement of retained earnings for Skousen Exploration Corporation for the year ending December 31, 20X3.

(c) Prepare calculations showing that cash is $890,000 as of December 31, 20X3.

(d) Prepare a balance sheet for Skousen Exploration Corporation as of December 31, 20X3.

(a) - (b)	SKOUSEN EXPLORATION CORPORATION
	Income Statement
	For the Year Ending December 31, 20X3
		Revenues
		Services to customers		$-
		Expenses
		Rent	$-
		Wages	-
		Interest	-
		Taxes	-	-
		Net income		$-
	SKOUSEN EXPLORATION CORPORATION
	Statement of Retained Earnings
	For the Year Ending December 31, 20X3
		Beginning retained earnings		$-
		Plus: Net income		-
				$-
		Less: Dividends		-
		Ending retained earnings		$-
(c)	Cash received:
		From customers ($1,600,000 - $125,000)		$-
		From stockholders		-
		From lenders		-		$-
	Cash payments:
		For rent		$-
		For wages		-
		For interest		-
		For taxes		-
		For dividends		-
		For land, building, equipment		-
		For repayment of loans		-		-
	Ending cash					$-
(d)	SKOUSEN EXPLORATION CORPORATION
	Balance Sheet
	December 31, 20X3
		Assets
		Cash		$-
		Accounts receivable		-
		Land		-
		Building		-
		Equipment		-
		Total assets		$-
		Liabilities
		Rent payable	$-
		Wages payable	-
		Interest payable	-
		Loan payable	-
		Total liabilities		$-
		Stockholders' equity
		Capital stock	$-
		Retained earnings	-
		Total stockholders' equity		-
		Total Liabilities and equity		$-