Carolyn Company has prepared the following alphabetical adjusted trial balance on December 31, 2016:

Carolyn Company

ADJUSTED TRIAL BALANCE

December 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Accounts Payable		6,400.00
2	Accounts Receivable	5,700.00
3	Accumulated Depreciation: Buildings		19,000.00
4	Accumulated Depreciation: Equipment		11,000.00
5	Additional Paid-in Capital		15,000.00
6	Administrative Expenses	6,500.00
7	Allowance for Doubtful Accounts		600.00
8	Buildings	42,000.00
9	Common Stock		4,000.00
10	Cash	5,000.00
11	Cost of Goods Sold	27,400.00
12	Dividends	2,400.00
13	Equipment	22,000.00
14	Income Tax Expense	4,035.00
15	Income Taxes Payable		4,035.00
16	Interest Expense	650.00
17	Interest Payable		650.00
18	Inventory	10,800.00
19	Land	6,800.00
20	Notes Payable		10,000.00
21	Prepaid Insurance	1,600.00
22	Rent Revenue		2,800.00
23	Retained Earnings		14,500.00
24	Sales Revenue		54,900.00
25	Selling Expenses	9,700.00
26	Unearned Rent		700.00
27	Wages Payable		1,000.00
28	Totals	144,585.00	144,585.00

	For classification purposes:
	Interest payable is due July 1, 2017
	Notes payable are due July 1, 2020

Required:

Prepare the following 2016 items in proper form for Carolyn:

1. the income statement

2. the retained earnings statement

3. the ending balance sheet (Hint: The Common Stock, Additional Paid-in Capital, and Retained Earnings accounts are summed to determine the total shareholders equity.)

4. the closing entries in the general journal

Additional Information:

Labels
Contributed Capital
Current Assets
Current Liabilities
Long-term Liabilities
Operating expenses
Other items
Property, Plant, and Equipment
Amount Descriptions
Add: Net income for 2016
Earnings per share
Gross profit
Income before income taxes
Income from operations
Less: Dividends for 2016
Less: Net loss for 2016
Net income
Net loss
Retained earnings, December 31, 2016
Retained earnings, January 1, 2016
Total Assets
Total current assets
Total current liabilities
Total Liabilities
Total Liabilities and Shareholders Equity
Total operating expenses
Total property, plant, and equipment
Total Shareholders Equity