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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.
Please note that usually a balance sheet is "As of" a given date and an income statement is "For the Year Ended" a ...
Using accounts and their balances, this solution illustrates how to compile them into properly-formatted financial statements.