The Imagination Studios, Inc., produces television shows. The company earned $300,000 and $400,000 in 2006 and 2007, respectively.

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The Imagination Studios, Inc., produces television shows. The company earned $300,000 and $400,000 in 2006 and 2007, respectively. The company had total assets of $4,000,000 and total liabilities of $1,000,000 on January 1, 2006. The company had no investing or financing transactions during 2006. On July 1, 2007, the company purchased studio property for $3,000,000 by issuing debt for the same amount.

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