Below are the accounts of Gino’s Painting Specialists, Inc. The company has just completed its first year of operations ended September 30, 2010. 

Required 

1. Prepare the income statement, statement of retained earnings, and balance sheet for Gino’s Painting Specialists, Inc. 

2. Why would the owners of Gino’s Painting Specialists, Inc., set their business up as a corporation and not a partnership?

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Accounts Payable Accounts Receivable $10,500 Income Taxes Payable $ 3,000 Marketing Expense 2,600 Painting Service Revenue 82,000 2,000 Salaries Expense 1,500 Cash Common Stock Dividends Equipment Equipment Rental Expense Income Taxes Expense 56,000 1,000 Salaries Payable 6,300 Supplies 2,900 Supplies Expense 3,000 Truck Rent Expense 400 4,100 7,200