The following are transactions for Zebra Company for 2002:
1. The owners started the business by contributing $30,000 cash.
2. The company purchased office equipment for $8,000 cash and land for $15,000
cash.
3. The company earned a total of $22,000 of revenue of which $16,000 was collected
in cash.
4. The company purchased $550 worth of supplies for cash.
5. The company paid $6,000 in cash for other operating expenses.
6. At the end of the year, the company owed employees $3,600 for work that the
employees had done in 2002. The next payday, however, is not until January 4,
2003.
7. 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 5 years
(straight-line depreciation, no salvage value.)
Required:
Prepare the income statement for the year ended December 31, 2002, and the balance
sheet at December 31, 2002.