Worksheet for Service Company Whitaker Consulting Company has prepared a trial balance on the following partially completed worksheet for the year ended December 31, 2019: Retained Trial Income Earnings Balance Balance Adjustments Statement Statement Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit 3,800 Accounts Cash Prepaid Rent 2,400 7,000 1,400 2,000 4,000 Office Equipment Accumulated Depreciation Note Payable (due 7/1/20) Common Stock (200 shares) Retained Earnings (1/1/19) Dividends Consulting Revenues Salaries Expense 3,200 200 6,100 2,500 Miscellaneous Expenses 800 Totals 16,700 16,700 Additional information: (a) On January 1, 2019, the company had paid 2 years' rent in advance at $100 a month for office space, (b) the office equipment is being depreciated on a straight-line basis over a 10-year life, and no residual value is expected, (c) interest of $150 has accrued on the note payable but has not been paid, and (d) the income tax rate is 30% on current income and will be paid in the first quarter of 2020. Required: 1. Complete the worksheet. Enter all amounts as positive numbers. WHITAKER CONSULTING COMPANY Worksheet For the Year Ended December 31, 2019 Retained Earnings Retained Earnings Trial Balance Trial Balance Adjustments Adjustments Income Statement Income Statement Statement Statement Balance Sheet Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 3,800 3,800 Prepaid rent 2,400 1,200 1,200 Office equipment 7,000 7,000 1,400 700 2,100 2.00 2,000 Accumulated depreciation Note payable (due 7/1/20) ( Common Stock (200 shares) () Retained earnings (1/1/19) 4,000 4,000 3,200 3,200 Dividends 200 200 Consulting revenues 6,100 6,100 Salaries expense 2,500 2,500 Miscellaneous expenses 800 800 Totals 16,700 16,700 Rent expense 1.200 1,200 Depreciation expense 700 700 Interest expense 150 154 Miscellaneous expenses SIKE 800 Totals 16,700 16,700 Rent expense 1.200 1,200 Depreciation expense 700 700 Interest expense 150 150 Interest payable 150 1s) 150 2,050 2,050 5,350 6,100 Income tax expense 225 225 Income taxes payable 225 8,250 X 3,575 6,100 Net income 525 525 2.275 2,275 6,100 6,100 200 3,725 12,000 8,475 Retained earnings (12/31/19) 3,525 3,525 3,725 3,725 12,000 12,000 Feedback 2. Prepare the income statement for 2019. For Earnings per Share computation, round to two decimal places. WHITAKER CONSULTING COMPANY Income Statement For Year Ended December 31, 2019 Feedback 2. Prepare the income statement for 2019. For Earnings per Share computation, round to two decimal places. WHITAKER CONSULTING COMPANY Income Statement For Year Ended December 31, 2019 Consulting revenues 6,100 Operating expenses Salaries expense 2,500 Rent expense 1,200 Depreciation expense ZINE Miscellaneous expenses 800 Total operating expenses 5,200 Income from operations 900 Income before income taxes X Interest expense 150 Income before income taxes 5 750 Income tax expense 225 Net income s S25 Earnings per share 5,350 Foodthock