Below are the accounts of Collegiate Painters, Inc. The company has just completed its first year of operations ended September 30, 20x7.

Required 1. Prepare the income statement, statement of retained earnings, and balance sheet for Collegiate Painters, Inc.
2. User insight: Why would the owners of Collegiate Painters set their business up as a corporation and not a partnership?

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Accounts Receivable $13,200 Accounts Payable 10,500 Cash 2,600 Common Stock 2,000 Dividends 1,000 Equipment 4,700 Equipment Rental Expense 1,300 Income Taxes Expense 3,000 Income Taxes Payable 3,000 Marketing Expense 1,500 Painting Service Revenue 78,800 Salaries Expense 56,000 Salaries Payable 700 Supplies 400 Supplies Expense 4,100 Truck Rent Expense 7,200