Q1) The following selected information is taken from records of Beckstrom Corporation.
| Accounts payable |
$35,000 |
| Accounts receivable |
$65,000 |
| Advertising expense |
$15,000 |
| Cash |
$19,500 |
| Supplies expense |
$46,000 |
| Rent expense |
$10,000 |
| Utilities expense |
$3,000 |
| Income taxes (30% of income before taxes) |
? |
| Miscellaneous expense |
$4,400 |
| Owners equity |
$140,000 |
| Salaries expense |
$61,000 |
| Fees (revenues) |
$384,000 |
Create income statement for year ended December 31, 2006. (Suppose that 7,500 shares of stock are outstanding.)