Use the information provided in P3-8A.

Required

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

b. Prepare closing entries using the Income Summary account.

Problem P3-8A

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

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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