Create an income statement for Q1 year 4: During the first quarter of the Year 4 (January, February, March), the following events occurred: 

A. $500 cash was paid for a new trademark for the company. It was determined that this amount should be capitalized rather than expensed. Since the trademark has an indefinite useful life, no amortization will be recorded. 

B. Wages and salaries totaling $3,200 were paid in cash during the first quarter of Year 4. A portion of this amount paid off the wages that were payable at the end of the previous year. The remaining amount was for wages paid in the first quarter of Year 4. 

C. All accounts receivable outstanding on December 31, Year 3 were collected in the first quarter of year 4. 

D. Tallulah Company's advertising agency billed the firm $1,000 for a campaign that ran during the first quarter of Year 4. Tallulah Company had not paid the bill as of March 31, Year 4 

E. Sales totaling $18,000 were made to customers during the first quarter of Year 4. Of these sales, 60% were collected during the first quarter and the balance is expected to be collected during the next quarter.

Answer rating: 100% (QA)

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