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Preparing An Income Statement and Balance Sheet

I am having trouble with this assignment and would like all the help I could get. Please help.

From the information that follows, prepare an income statement and balance sheet for ABC Management Consulting, for presentation at the annual board of directors meeting. You may use either a word processing or electronic spreadsheet program to present your information.

Cash - $45,000.
Consulting fees earned - $253,460.
Accounts receivable - $66,660.
Depreciation expense - $10,000.
Office supplies - $17,000.
Salaries expense - $128,000.
Prepaid insurance - $3,600.
Interest expense - $10,750
Office equipment - $120,000.
Insurance expense - $4,600.
Accounts payable - $32,000.
Rent expense - $20,000.
Interest payable - $2,150.
Office supplies expense - $23,000.
Salaries payable - $16,000.
Advertising expense - $48,000.
Long-term notes payable - $75,000.
Utilities expense - $11,000.
Retained earnings - $118,000.
Interest earned - $11,000.

Solution Preview

Please note that usually a balance sheet is "As of" a given date and an income statement is "For the Year Ended" a ...

Solution Summary

Using accounts and their balances, this solution illustrates how to compile them into properly-formatted financial statements.

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