On January 1, 2019, Brad Thomas Invested $30,000 in Thomas

question 17

Essay

On January 1, 2019, Brad Thomas invested $30,000 in Thomas Repairs. During 2019, Brad withdrew $17,000 for personal use. Thomas Repairs reports the following balances on December 31, 2019: $\begin{array}{l}\begin{array} { l r } \text { Accounts receivable } & \$ 9,000 \\\text { Accounts payable } & 4,200 \\\text { Service revenue } & 25,550 \\\text { Land } & 4,000 \\\text { Rent expense } & 4,500 \\\text { Note payable } & 3,800 \\\text { Supplies } & 900 \\\text { Brad Thomas, Capital, Jan. 1, } 2014 & 0 \\\text { Salary expense } & 9,650 \\\text { Cash } & 18,500 \\\text { Brad Thomas, Withdrawals } & 17,000\end{array}\\\\\text { Prepare an income statement for the year ended December } 31,2019 .\end{array}$

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Definitions:

Compounded Monthly

A method where interest earned is added to the principal amount on a monthly basis, and future interest is calculated on the new total.

Life of the Loan

The duration over which a loan is scheduled to be repaid.

Total Interest

The cumulative amount of interest paid on a loan over its entire term, encompassing all interest charges over the life of the loan.

Annual Payments

Regular payments made once a year, often associated with loans, annuities, or investment returns.