Task: Accounts payable . . . . . . . . . . . . . . . . . . . . . .. $ 35,000 Accounts receivable . .

Task:
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
1. Prepare an income statement for the year ended December 31, 2006. (Assume that 7,500 shares of stock are outstanding.)