1

The accountant prepared the following list from the company's accounting records for the year ended December 31, 2021:

F2

Retained Earnings, 1/1/21	207,000	Prepaid Advertising	50,000
Cash	77,000	Common Stock	400,000
Accounts Payable	50,000	Accounts Receivable	170,000
Sales Revenue	955,000	Interest Income	50,000
Cost of Goods Sold	700,000	Salary Expense	140,000
Land	750,000	Income Tax Expense	20,000
Notes Payable	450,000	Utilities Expense	45,000
Inventory	200,000	Salaries Payable	40,000

Using good form and proper dates, prepare a: 1) single-step income statement; 2) statement of retained earnings; and 3) balance sheet for Stellas Starry Ice Cream. Include appropriate headings for all financial statements.

2.

-Refer back to the account balances from Problem #1. Prepare the journal entries (i.e., closing entries) necessary to close Stellas Starry temporary accounts for the year-ended December 31, 2021.

-What is the balance of Stellas Starry retained earnings after the closing entries are made on December 31, 2021?