Question

From the information that follows, prepare an income statement and balance sheet for ABC Management Consulting for presentation at the annual board of directors meeting. Use proper formatting of financial statements by reviewing the various illustrations and exhibits in the texts. For the purposes of this assignment, you can ignore income taxes. You may use either a word-processing or electronic spreadsheet program to present your information.

Cash: $15,000.
Sales: $742,460.
Long-term investments: $100,000.
Accounts receivable: $60,660.
Depreciation expense: $10,000.
Office supplies: $17,000.
Salaries expense: $105,000.
Prepaid insurance: $3,600.
Interest expense: $3,750.
Office equipment: $120,000.
Insurance expense: $4,600.
Accounts payable: $32,000.
Rent expense: $14,400.
Interest payable: $2,150.
Office supplies expense: $3,000.
Salaries payable: $16,000.
Advertising expense: $48,000.
Long-term notes payable: $75,000.
Utilities expense: $11,000.
Retained earnings: $120,000.
Interest earned: $5,000.
Inventory: $79,755.
Cost of goods sold: $406,845.
Accumulated depreciation: $10,000.