Transactions for Pops Company for 2011 were as follows:
a. The owners started the business as a corporation by contributing $30,000 cash in exchange for common stock.
b. The company purchased office equipment for $8,000 cash and land for $15,000 cash.
c. The company earned a total of $22,000 of revenue of which $16,000 was collected in cash.
d. The company purchased $890 worth of supplies for cash.
e. The company paid $6,000 in cash for other operating expenses.
f. At the end of the year, the company owed employees $2,480 for work that the employees had done in 2011. The next payday, however, is not until January 4, 2012.
g. Only $175 worth of supplies was left at the end of the year.
The office equipment was purchased on January 1 and is expected to last for eight years (straight-line depreciation, no salvage value).
Prepare the income statement the year ended December 31, 2011, and the balance sheet at December 31, 2011.