Kaisha Corporation engaged in the following activities during the year:

Service Revenue, $13,200; Rent Expense, $1,200; Wages Expense, $8,340;

Advertising Expense, $1,350; Utilities Expense, $900; Income Taxes Expense, $200; and Dividends, $700. In addition, the year-end balances of selected accounts were as follows: Cash, $1,550; Accounts Receivable,

$750; Supplies, $100; Land, $1,000; Accounts Payable, $450; and Common Stock, $1,000.

In proper format, prepare the income statement, statement of retained earnings, and balance sheet for Kaisha Corporation (assume the year ends on December 31, 20x6). (Hint: You must solve for the beginning and ending balances of retained earnings for 20x6.)

Stockholders’ Equity and the Accounting Equation