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Upon graduation from high school, William Nitter accepted a job as a plumber's assistant for a large Iocal plumbing company. Atter three years of hard

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Upon graduation from high school, William Nitter accepted a job as a plumber's assistant for a large Iocal plumbing company. Atter three years of hard work. Willam received a plumbing licence and decided to start his own business. He had saved $27000. which he invested in the business. His lawyer had advised him to start as a corporation. First, he transferred the $27.000 from his savings account to a business bank account for Willam's. Plumbing Services Inc, and was issued shares. He then purchased a used panel truck for $19,500 cash and second-hand tools for $3,300, rented space in a small building, inserted an actvertisement in the focal paper, and opened his business on July 1 of the current year. Immediately. Willam was very busy, after one month, he employed an assistant. Nthough Wiliam knew practically nothing about the financial side of the business, he realized that a number of reports were tequired and that expenses and collections from cllents had to be controlled carefully. At December 31 of the current year, prompted in part by concetn about his income tax situation, Wiliam recognized the need for financial statements. His wife Jennifer developed some financial statements for the business. On December 31 , with the help of a friend, she gathered the following data for the six months jist ended. Bank account deposits of collections for plumbing services totalled $67,000. The following cheques had been written plumber's assistant, $17,300; payroll taxes, $780; oll, gas, and maintenance for the truck. $2.550; rent. $2,650; supplies purchased and used on jobs. \$17,400, utilties and telephone, $2,000; insurance, $760 for the past six months; and misceilaneous expenses (jncluding advertising). $1,020. Also, uncollected invoices to customers for plumbing services amounted to $6,300. The $530 rent for December had not been paid. Willam estimated the cost of using the truck and tools (depreciation) during the six months to be $2,700. The average income tax rate for income from his business is 30 percent. Required: 1. Prepare a statement of earnings for Willam's Plumbing Services lnc, for the six months of July through December of the curreet yeur. Use the following main captions: Revenue from services, Expenses, Eamings before income taxes, and Net earnings. Required: 1. Prepare a statement of earnings for Willam's Plumbing Services Inc. for the six months of July through December of the current year. Use the foliowing main captions: Revenue from services, Expenses, Eamings betore income taxes, and Net earnings. 2. Prepare a statement of financial position for William's Plumbing Services Inc, as at December 31 , current year

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