A company provides the following account balances at year end $($except for Retained Earnings, which is the beginning balance$).$ The CFO has asked you to use this information to prepare an income statement and balance sheet.

Expenses: Advertising expense $ $15,000$ Assets: Cash $ $32,000$

Insurance expense $24,000$ Accounts receivable $29,000$

Salaries expense $68,000$ Supplies $16,000$

Rent expense $8,000$ Land $75,000$

Liabilities: Salaries payable $12,000$ Revenues: Service revenue $134,000$

Notes payable $30,000$ Interest revenue $9,000$

Dividends: Dividends $7,000$ Equity: Common stock $62,000$

Retained earnings $27,000$

$$ 

 

Required:

Use the information provided to complete the income statement.

Use the information provided to complete the balance sheet.

Use a conditional statement to evaluate whether the accounting equation balances.