Problem regarding the contributed capital

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Reference no: EM131413018

On January 1, 2015, Fast Track, Inc. was started with $30,000 invested by the owners as contributed capital.

On December 31, 2015, the accounting records contained the following amounts:

Accounts Payable

$1,800

Dividends Declared and Paid

$1,900

Accounts Receivable

2,200

Office equipment

25,000

Accumulated Depreciation

500

Office supplies

1,750

Cash

10,000

Office supplies expense

600

Consulting fees revenue

19,200

Rent expense

2,400

Common stock

30,000

Salary expense

6,900

Depreciation expense

500

Telephone expense

250

  1. The Company also estimates that it will have to pay income tax expense of $550.
  2. The Company has 100,000 shares of common stock outstanding.
  3. Prepare an income statement at December 31, 2015 for the first year of Fast Track's operation in proper form. Be sure to include income tax expense and earnings per share.

Reference no: EM131413018

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