ANSWERS TO QUESTIONS

Depr.—Furniture and Equipment 3,125 ($25,000 X .125) -6- Interest Expense 60 Interest Payable 60 ($7,200 X .10 X 30/360) -7- Prepaid Rent 750 Rent Expense 750 -8- Office Salaries Expense 2,510 Salaries Payable 2,510 PROBLEM 3-6 (Continued) (b) Carlos Beltran, Consulting Engineer Income Statement For the Year Ended December 31, 2007 Service ... ................
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