Transactions: 1 2 3 4 5 6 7 In January of Year 1 Hicks Company signed a contract for $720,000 to provide consulting services evenly over a 3 year period. They received one-half of the payment up front and will receive the remainder at the completion of the contract Hicks owns land that has increased in value by $5,000 Year 3 on research that they hope will lead to better Consulting processes. Hicks signed a three-year lease on office space for $6,000 per year. They were required to pay the entire amount up Hicks ran an advertising campaign in Year 1 for $5,000. They paid for the advertising in Year 2 Hicks purchased $21,000 of computer equipment and paid for it in Year 1 The computer equipment is expected to last for 3 Employee salaries for work they completed in Year 1 was $8,000, for Year 2 $10,000, for Year 3 $12,000. Hicks paid Year 1 salaries on December 29 of Year 1 Year 2 salaries on January 2 of Year 3, and Year 3 salaries on December 30 of Income Statement Year Income Statement Income Statement Year Consulting Revenue R&D Rent Advertising 1 Computer Equipment Salaries 3 Net Income 4 5 26 Income Statement Year Income Statement Income Statement Year 27 Consulting Revenue 28 29 30 R&D 31 Rent 32 33 34 35 Advertising Depreciation Salaries Net Income 36 37 38 29