Reference no: EM132469114

Northwestern Corporation, a private company, is authorized to issue an unlimited number of common shares and 500,000, $5 cumulative preferred shares.

It began operations on January 1, 2023, and the following occurred in 2023:

The following information is also available with respect to the company operations during the year 2023:

Point 1. Collected $276,000 cash for consulting revenue earned.

Point 2. Paid $167,000 salaries expense; $48,000 rent expense; and $11,000 office expense.

Point 3. Purchase equipment for $150,000 cash.

Point 4. At December 31, the following adjustments were required:

a. Depreciation on the equipment, $15,000.

b. Consulting revenue earned but not yet invoiced, $25,000

c. Accrued salaries expense, $4,500

d. Income tax rate, 15%. No instalments were paid during the year.

Question 1: Northwestern has elected to prepare its financial statements under ASPE