Refer to PB12-4. Required: Complete requirements 1 and 2 using the direct method. Current Year Previous Year

Refer to PB12-4.

Required:
Complete requirements 1 and 2 using the direct method.

Transcribed Image Text:

Current Year Previous Year Balance Sheet at December 31 3.200 1000 100 $4.300 $ 350 1.200 2.750 $4,300 $4.000 500 50 $4,550 $1.100 1,000 2.450 $4,550 Cash Accounts Receivable Prepaid Rent Salaries and Wages Payable Common Stock Retained Earnings Income Statement Service Revenu Salaries and Wages Expense Rent and Office Expenses $33.950 30,000 3,650 $ 300 Net Income