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Talley Inc. experienced the following events in 2016, in its first year of operation:
1. Received $20,000 cash from the issue of common stock.2. Performed services on account for $38,000.3. Paid the utility expense of $2,500.4. Collected $21,000 of the accounts receivable.5. Recorded $15,000 of accrued salaries at the end of the year.6. Paid a $2,000 cash dividend to the shareholders.
Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for the 2016 accounting period.
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In what ways do the elements of the financial statements interact with one another? How might changing one of the financial statements affect the other financial statements?
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Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 100,000 shares of common stock were outstanding during the year
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