Exercise 3-8 Preparing Financial Statements from a Trial Balance LO P6 Following are the accounts and balances (in random order) from the adjusted trial balance of Stark Company. Notes payable Prepaid insurance Interest expense $29,000 4,300 Accumulated depreciation-Buildings Accounts receivable 860 Utilities expense $33,000 7,600 3,100 Accounts payable 10,500 Interest payable Wages payable 2,200 Unearned revenue 820 1,700 Cash 46,000 Supplies expense 560 Wages expense 9,300 Buildings 220,000 Insurance expense 3,600 Dividends 12,000 Common stock 24,400 Depreciation expense-Buildings 11,000 Retained earnings 108,400 Supplies 1,700 Services revenue 110,000 Prepare the (1) Income statement and (2) statement of retained earnings for the year ended December 31 and (3) balance sheet at December 31. The Retained Earnings account balance was $108,400 on December 31 of the prior year. Common stock Retained earnings Services revenue 24,400 Depreciation expense-Buildings 108,400 Supplies 11,000 1,700 110,000 Prepare the (1) income statement and (2) statement of retained earnings for the year ended December 31 and (3) balance sheet at December 31. The Retained Earnings account balance was $108,400 on December 31 of the prior year. Complete this question by entering your answers in the tabs below. Income Statement Statement of Retained Balance Sheet Earnings Prepare the income statement for the year ended December 31. STARK COMPANY Income Statement For Year Ended December 31 Services revenue 110,000 Expenses Depreciation expense-Buildings $ 11,000 Insurance expense 3,600 Interest expense 860 Supplies expense 560 Utilities expense 3,100 Wages expense 9,300 Total expenses 28,420 $ 81,580 Insurance expense Common stock Retained earnings Services revenue 3,600 Dividends 24,400 LLU, 200 12,000 Depreciation expense-Buildings 11,000 1,700 108,400 Supplies 110,000 Prepare the (1) income statement and (2) statement of retained earnings for the year ended December 31 and (3) balance December 31. The Retained Earnings account balance was $108,400 on December 31 of the prior year. Complete this question by entering your answers in the tabs below. Income Statement Statement of Retained Balance Sheet Earnings Prepare the statement of retained earnings for the year ended December 31. The Retained Earnings account balance was $108,400 on December 31 of the prior year. STARK COMPANY Statement of Retained Earnings For Year Ended December 31 Retained earnings, Dec. 31 prior year end Add: Net income $ 108,400 81,580 189,980 Less: Dividends 12,000 Retained earnings, Dec. 31 current year end $ 177,980 Statement of Income Statement Retained Balance Sheet Earnings Prepare the balance sheet at December 31. Cash Accounts receivable Prepaid insurance Supplies Buildings STARK COMPANY Balance Sheet December 31 Assets $ 46,000 7,600 4,300 1,700 220,000 33,000 187,000 $ 246,600 Liabilities Accumulated depreciation-Buildings Total assets Accounts payable Notes payable Wages payable Interest payable Unearned revenue Total liabilities Common stock Retained earnings Total equity Total liabilities and equity Equity 24,400 108,400 10,500 29,000 2,200 820 1,700 44,220 132,800 $ 177,020