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Submit the completed income statement. Use the information below and the excel template to construct an accrual-based income statement.

Complete the I/S worksheet some items are already completed.

Income StatementIncome Statement Worksheet

Selected Balance Sheet Entries Line No. if Use on I/S (4) 12/31/2018 Adjustment 15,000 Assets: Accounts Receivable Supplies Inventories Prepaid Expenses Market Value of Brewery Investment Market Value of all Real Estate 9,000 27,000 29,500 70,000 12/31/2019 15,000 10,000 25,000 31,000 72,000 440,000 1,359 41,000 Liabilities: Current Portion of Deferred Taxes Accounts Payable Notes payable within 1 year Accrued interest (current and non-curr) Accrued income and soc. sec. taxes Other accrued expenses and items 2,492 39,000 16,000 10,000 21,000 3,000 14,000 24,000 4,000 (27) (14) (1) (6) Other Items/transactions: Cost of land purchased in 2019 Cost of buildings purchased in 2019 Cash tax expenses paid in 2019 Cash interest expense paid in 2019 Cash sales for 2019 Cash operating expenses for 2019 Cost of machinery and equipment purchased in 2019 Total depreciation expense taken in 2019 Used equipment with a tax basis of $20,000 sold in 2019 for $15,000 Dividends received from brewery investment for 2019 Amount 140,000 300,000 48,000 17,000 910,000 650,000 85,000 50,000 ??? 5,000 Subtotal Total Line 910,000 Item EVENUES AND ADJUSTMENTS Sales: Cash receipts Other business income Accrual adjustments: Inventories Accounts Receivable (1) (2) (3) 15,000 (4) Gross revenue $0 (5) 650,000 (6) PERATING AND INTEREST EXPENSES AND ADJUSTMENTS Operating Expenses: Cash operating expenses Accrual adjustments: Accounts payable Prepaid Expenses Supplies Work in progress Other accrued expenses and items + ' ' ' + @ @ 3 (9) (10) (11) Depreciation (12) Total Operating Expense (13) 17,000 (14) Interest Expenses: Amount of interest paid in cash Accrual adjustments: Accrued interest (15) Accrued interest (15) Total Interest Expense (16) Total Operating and Interest Expense $0 (17) Net income from operations $0 (18) Gains/losses on sales of capital assets (19) Net income before taxes and non-business adjustments $0 (20) (21) N-BUSINESS ITEMS Non-business wages Non-business interest and dividends Other non-business income Gains/losses on sales of nonbusiness assets (22) (23) (24) Total nonbusiness income $0 (25) Net income before taxes $0 (26) 48,000 (27) X EXPENSES AND ADJUSTMENTS Amount of tax paid in cash Accrual adjustments: Income and social security taxes Current portion of deferred taxes (28) (29) Total Tax Expense $0 (30) NET INCOME $0 (31) Selected Balance Sheet Entries Line No. if Use on I/S (4) 12/31/18 Adjustment Notes 15,000 Accounts receivable is a revenue adjustment. Adjustment is added to cash revenues. Assets: Accounts Receivable Supplies Inventories Prepaid Expenses Market Value of Brewery Investment Market Value of all Real Estate 9,000 27,000 29,500 70,000 12/31/19 15,000 10,000 25,000 31,000 72,000 440,000 1,359 41,000 Liabilities: Current Portion of Deferred Taxes Accounts Payable Notes payable within 1 year Accrued interest (current and non-curr) Accrued income and soc. sec. taxes Other accrued expenses and items 2,492 39,000 16,000 10,000 21,000 3,000 14,000 24,000 4,000 (27) (14) (1) (6) Other Items/transactions: Cost of land purchased in 2019 Cost of buildings purchased in 2019 Cash tax expenses paid in 2019 Cash interest expense paid in 2019 Cash sales for 2019 Cash operating expenses for 2019 Cost of machinery and equipment purchased in 2019 Total depreciation expense taken in 2019 Used equipment with a tax basis of $20,000 sold in 2019 for $15,000 Dividends received from brewery investment for 2019 Amount Notes 140,000 300,000 48,000 Tax expense section 17,000 Interest expense section 910,000 Revenue section 650,000 Operating expense section 85,000 50,000 ??? 5,000 Extra Credit: List all items NOT used in completing the accrual based income statement for the Illini Tap and briefly describe why they were not used in preparing the I/S. Type answer here

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