ASSETS INCREASE: DEBIT DECREASE: CREDIT LIABILITIES INCREASE: CREDIT DECREASE: DEBIT OWNER'S EQUITY INCREASE: CREDIT DECREASE: DEBIT 101 CASH 201 ACCTS PAYABLE 301 COMMON STOCK TRANSACTIONS--ANALYZE EACH ONE AND INSERT THE ENTRIES IN THE T-ACCOUNTS. A TRIAL BALANCE WILL BE GENERATED AUTOMATICALLY. 1 Marlow Corporation issued 100,000 shares of $1.00 par common stock at par, receiving cash. (See footnote below) 2 The company purchased equipment costing $15,000, paying cash. 302 RET. EARNINGS HHE 104 ACCTS RECEIVABLE 3 Operating Expenses were incurred in the amount of $74,000. A total of $22,000 of the expenses were paid in cash; the rest, $52,000, were on account. OPERATIONS 501 OPER. EXPENSES 401 SERVICE REVENUE 4 The company eamed service revenue in the amount of $112,000; a total of $42,000 was receive in cash; the rest, $70,000, was on account. 110 EQUIPMENT HAHI 5 Depreciation was recorded on the equipment, $1,500. 509 DEPR. EXPENSE 6 Marlow calculates its income taxes at the rate of 25%. The income taxes 6 . are paid in cash. . This would be a good moment to prepare the income statement. 112 ACC. DEPR. EQUIP. 510 INCOME TAX EXPENSE XXX 7 Use the following closing process: Service Revenue xxx Operating Expenses Depreciation Expense Income Tax Expense Retained Earings XXX XXX XXX Marlow Corporation Income Statement For Year Ended 12/31/2021 Check to make sure your revenues and expenses are at zero, your net income is in Retained Earings, and that your trial balance is in balance. Also, calculate your EPS on the income statement DR CR 8 Marlow declared and paid a $.10 dividend. Debit Retained Eamings and credit cash. Total Revenue Operating Expenses Depreciation Expense Total Expenses Net Income Before Income Tax Income Tax Expense Net Income 9 Create a balance sheet using the format shown below. 101 CASH 104 ACCTS RECEIVABLE 106 SUPPLIES 110 EQUIPMENT 112 ACC. DEPR. EQUIP. 201 ACCTS PAYABLE 301 COMMON STOCK 302 RET. EARNINGS 401 SERVICE REVENUE 501 OPER. EXPENSES 503 ADVERT. EXPENSE 504 SALARY EXPENSE 509 DEPR. EXPENSE 510 INC. TAX EXPENSE TOTALS In Balance YES Earnings Per Share Marlow Corporation Balance Sheet 31/12/2021 0 0 0 Cash Accts Receivable Equipment -Accum. Depr. . Total Assets Accts Payable Total Liab. Common Stock Retained Eamings Total Stockholders' Equity Total Liab & Stockholders' Equity