Refer to PB12-4.

Additional Data:
a. Prepaid Expenses relate to rent paid in advance.
b. Other Operating Expenses were paid in cash.
c. An owner contributed capital by paying $200 cash in exchange for the company’s stock.

Required:
Complete requirements 1 and 2 using the directmethod.

2013 2012 Balance Sheet at December 31 3,200 1,000 100 $ 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 Expenses Wages Payable Contributed Capital Retained Earnings Income Statement for 2013 Lessons Revenue Wages Expense Other Operating Expenses $33,950 30,000 3,650 $ 300 Net Income