The adjusted trial balance shown below is for Sharpe Consulting Service as of December 31. Byran Sharpe made no capital contributions during the year.

Required

a. Prepare an income statement and a statement of stockholders' equity for the year, and a balance sheet as of December 31 .

b. Prepare closing entries directly to Retained Earnings in general journal form.

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Cash..... Accounts receivable. Supplies.... Prepaid insurance.. Equipment .... Accumulated depreciation-Equipment. ... Accounts payable..... Long-term notes payable Common stock..... Retained earnings Dividends.... Service fees earned. Rent expense... Salaries expense Supplies expense. Insurance expense.. Depreciation expense-Equipment Interest expense.. Totals.... Adjusted Trial Balance Debit Credit $ 2,900 3,270 5,060 1,500 6,400 $ 1,080 845 7,200 2,800 5,205 2,900 62,600 15,500 33,400 4,200 3,250 720 630 $79,730 $79,730