Respuesta :
Answer and Explanation:
The Preparation of the income statement is shown below:-
Izzo Company
Income statement
For the year ended December 31, 2019
Particulars               Amount
Service Fee Revenue       $275,000
Total Revenue a            $275,000
Expenses:
Supplies expense           $8,000
Insurance expense          $4,000
Rent expense              $10,000
Salaries expense           $56,000
Total Expense b            $78,000
Net Income (a-b) Â Â Â Â Â Â Â Â Â Â Â $197,000
2. The preparation of the balance sheet is shown below:-
Izzo Company
Balance sheet
For the year ended December 31, 2019
Assets
Current assets: Â
Cash                   $213,000
Accounts Receivable       $16,000
Supplies Inventory         $32,000
Total current assets        $261,000
Property, plant, and equipment: Â
Building                 $80,000
Total Long-term assets    $80,000
Total Assets             $341,000
Liabilities
Current liabilities:
Account Payable         $34,000
Total current liabilities     $34,000
Long term liabilities
Notes payable [long term] Â $32,000
Total long term Liabilities  $32,000
Stockholders` Equity
Contributed capital        $80,000
Retained Earnings * Â Â Â Â Â Â Â $195,000
Total stockholders` equity  $275,000
Total liabilities and stockholders
equity                   $341,000
*Note
Beginning Balance         $200,000
Add: Net Income           $197,000
Less: Â
Cash Dividends            ($202,000)
Retained Earnings Closing Â
Balance                    $195,000
