Reference no: EM132843697

At January 1 (beginning of its fiscal year), Conover, Inc., a financial services consulting firm, reported the following account balances (in thousands of dollars, except number of shares and par value per share):

Cash $ 1,980
Accounts payable $ 250
Short-term investments 450
Unearned revenue 1,400
Accounts receivable 3,690
Salaries Payable 950
Supplies 190
Short-term note payable 820
Prepaid expenses 4,880
Common stock ($1 par value) 54
Office equipment 1,610
Additional paid-in capital 6,756
Accumulated depreciation-office equipment (440)
Retained earnings 2,130

1. Received $10,300 cash for consulting services rendered.
2. Issued 10,080 additional shares of common stock at a market price of $124 per share.
3. Purchased $720 of equipment, paying 25 percent in cash and owing the rest on a short-term note.
4. Received $930 from clients for consulting services to be performed in the next year.
5. Bought $550 of supplies on account.
6. Incurred and paid $1,920 in utilities for the current year.
7. Consulted for clients in the current year for fees totaling $1,700, due from clients in the next year.
8. Received $3,780 from clients paying on their accounts.
9. Incurred $6,290 in salaries in the current year, paying $5,420 and owing the rest (to be paid next year).
10. Purchased $1,310 in short-term investments and paid $840 for insurance coverage beginning in the next fiscal year.
11. Received $14 in interest revenue earned in the current year on short-term investments.

Required:

Problem 1: Prepare in good form an income statement for the current year ended December 31. (Ignore income taxes.) (Enter your answer in thousands, not in dollar)