Chapter 3 Accrual Basis of Accounting Cambridge Business Publishers LOS SE3-8. Prepare an Income Statement from an Adjusted Trial Balance The Decade Company's ad- justed trial balance contains the following balances as of December 31: Retained Earnings $8.500: Dividends $2,000: Sales $22.000; Cost of Goods Sold $8.000; Selling and Administrative Expenses $3,000; Interest Expense $1,500. Prepare an income statement for the year. a SD20 D