The inventory figures in this listing of account balances are for the beginning of year one. The December 31 year-end figures are food $5,915 and beverage $2,211. Adjustment must be made for these inventories. In addition an adjustment must be made for accrued payroll of $2,215. Depreciation of furniture and equipment should be made on a straight-line basis. The amount of the bank loan principal that will have to be paid in year two is $38,260. Calculate income tax at 25 percent of income before tax.
Prepare an income statement and a balance sheet for the 4C Company for the year 0001.