Presented here are the accounts of Town and Country Realty Corporation for the year ended December 31, 2011.

Requirements 

1. Prepare Town and Country Realty Corporation’s income statement.
2. Prepare the statement of retained earnings.
3. Prepare the balance sheet.
4. Answer these questions about the company:

a. Was the result of operations for the year a profit or a loss? How much?

b. How much in total economic resources does the company have as it moves into the new year?

c. How much does the company owe?

d. What is the dollar amount of the stockholders’ equity in the business at the end of the year?

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Land Note payable Property tax expense Dividends Rent expense $ 6,000 Common stock $ 30,000 26,000 Accounts payable 13,000 2,400 Accounts receivable 4,800 26,000 Advertising expense 14,000 18,000 Building 133,900 Salary expense 68,000 Cash 8,000 Salary payable 1,400 Equipment 20,000 Service revenue 195,000 Insurance expense 2,300 Supplies 6,000 Interest expense 9,000 Retained earnings, 12/31/2010 53,000