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13 adjusting entries (The following information applies to the questions displayed below.] The December 31, 2021, adjusted tr
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FIGHTIN BLUE HENS CORPORATION
Income statement
For the year ended December 31, 2021
Service revenue $        300,000
Expenses:
Salaries expense $        200,000
Depreciation expense $          20,000
Rent Expense $          10,000
Interest Expense $            3,000
Total expenses $        233,000
Net Income $          67,000
FIGHTIN BLUE HENS CORPORATION
Income statement
For the year ended December 31, 2021
Service revenue $        300,000
Expenses:
Salaries expense $        200,000
Depreciation expense $          20,000
Rent Expense $          10,000
Interest Expense $            3,000
Total expenses $        233,000
Net Income $          67,000
Balance sheet as on December 31, 2021
Assets Liabilities
Current Assets Current Liabilities:
Cash $            10,000 Accounts Payable $          10,000
Accounts receivable $          130,000 Salaries Payable $            9,000
Prepaid Rent $              4,000 interest Payable $            3,000
Supplies $            20,000
Total Current Assets $          164,000 Total Current Liabilities $          22,000
Notes Payable $          20,000
Total Liabilities $          42,000
Long term assets: Stockholders equity
Equipment $          200,000 Common stock $        100,000
Accumulated depreciation $       (115,000) Retained earnings $        107,000
Total Long term assets $            85,000 Total stockholders equity $        207,000
Total Assets $          249,000 Total Liabilities and stockholders equity $        249,000
** Retained earning = Beginning balance + Current year profit
** Retained earning = 40000 + 67000
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