Below are the account balances for Tau Enterprises as of December 31, 2040:

• Service Revenue: $180,000
• Rent Expense: $14,000
• Salaries Expense: $50,000
• Office Supplies Expense: $2,000
• Equipment: $55,000
• Accounts Payable: $7,000
• Accounts Receivable: $10,000
• Cash: $22,000
• Notes Payable: $15,000
• Common Stock: $30,000

Requirements:

• Create a Trial Balance as of December 31, 2040.
• Draft an Income Statement for the year ended December 31, 2040.
• Prepare a Statement of Retained Earnings for the year ended December 31, 2040.
• Draft a Balance Sheet as of December 31, 2040.