Question: After its second year of operations, the following amounts were taken from the accounting records of Lisko Services, Inc., as of December 31, 2008. Lisko Services began its operations on January 1, 2007.
Capital stock $ 35,000
Cash ?
Dividends 21,000
Fees earned 355,740
Interest expense 2,240
Land 196,000
Miscellaneous expense 9,800
Notes payable 28,000
Rent expense 39,200
Salaries expense 98,000
Taxes expense 28,000
Utilities expense 50,400
Instructions: 1. Prepare an income statement for the year ending December 31, 2008.
2. Prepare a retained earnings statement for the year ending December 31, 2008. (Note: The retained earnings at January 1, 2008, was $108,500.)
3. Prepare a balance sheet as of December 31, 2008.
4. Prepare a statement of cash flows for the year ending December 31, 2008.