Cash flow statement from the exercise: operating cash flows for the fiscal year 20X1, received cash from customers during the fiscal year 20X1, paid salaries in cash during the fiscal year 20X1, investing cash flows for the fiscal year 20X1, financing cash flows for the fiscal year 20X1

Income Statement

Balance Sheet

a. On January 1, 201, Frances Corporation started doing business and the owners contributed $200,000 capital in cash. b. The company pald $24,000 to cover the rent for the office space for the 24-month perlod from January 1, 20X1, to December 31 , 202 MSK Inc. In retum, MSK promised to pay a fee of $150,000, which was to be pald in January 202 Frances fulfilled Its contractual obligation during 201. d. On July 1, 20X1, Frances purchased office equloment for $100,000 cash. The equipment has an est/mated useful life of five years and no salvage value. The equipment was immediately placed Into use. Frances uses the stralght-line method of depreciation. It records depreclation expense in proportion to the number of months' usage. e. Through November 30,201, the company had paid $66,000 to its employees for 11 months of salarles. Accrued salarles on December 31,201, were $6,000. f. On December 31, 20X1, Norbert Corporation advanced $20,000 to Frances Corporation for consulting services to be provided during 202 Required: 1. Provide joumal entrles for each of these transactions. 2. Provide adjusting entries at the end of the year. 3. Prepare an income statement for the year ended December 31,201. Ignore income taxes. 4. Prepare a balance sheet as of December 31,201. \begin{tabular}{|l|r|r|} \hline \multicolumn{3}{|c|}{ Frances Corporation } \\ \multicolumn{1}{|c|}{ Income Statement } \\ \hline \multicolumn{1}{|c|}{ For the year ended Dec 31, 20X1 } \\ \hline Consulting Revenue & & 150000 \\ \hline Expenses & 72000 & \\ \hline Salaries expense & 12000 & \\ \hline Rent expense & 10000 & \\ \hline Depreciation expense & & 94000 \\ \hline Total expense & & 56000 \\ \hline Net Income & & \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{\begin{tabular}{|} Statement of Owners Equity \\ For the year ended Dec 31, 20X1 \end{tabular}} \\ \hline Capital balance Jan1, 20X1 & \\ \hline Add: & 200000 \\ \hline Investments & 56000 \\ \hline Net Income & 256000 \\ \hline Capital balance, Dec31 20X1 & \\ \hline \end{tabular}