Financial Statements and Closing Entries The adjusted trial balance shown below is for Fine Consulting Service as of December 31. Byran Sharpe made no capital contributions during the year. SHARPE CONSULTING SERVICE Adjusted Trial Balance December 31 Debit Credit Cash $2,900 Accounts Receivable 3,270 Supplies 5,060 Prepaid Insurance 1,500 Equipment 6,400 Accum. Depr. - Equipment $1,080 Accounts Payable 845 Long - Term Notes Payable 7,200 Common Stock 2,800 Retained Earnings 5,205 Dividends 2,900 Service Fees Earned 62,600 Rent Expense 15,500 Salaries Expense 33,400 Supplies Expense 4,200 Insurance Expense 3,250 Depreciation Expense-Equipment 720 Interest Expense 630 Totals $79,730 $79,730 Required a. Prepare an income statement and a statement of stockholders' equity for the year, and a balance sheet as of December 31. b. Prepare closing entries directly to the Income Summary account. Note: Do not use negative signs with your answers, unless otherwise noted (such as Dividends and Accumulated Depreciation - Equipment). SHARPE CONSULTING SERVICE Income Statement For Year Ended December 31 Revenue $ Service Fees Earned Expenses Rent Expense Salaries Expense Supplies Expense Insurance Expense Depreciation Expense-Equipment Interest Expense Total Expenses Net Income ta Total SHARPE CONSULTING SERVICE Statement of Stockholders' Equity For Year Ended December 31 Common Stock Retained Earnings Balance, January 1 $ $ Add: Net Income Less: Dividends Paid(enter as a negative) Balance, December 31 $ $ $ $ $ SHARPE CONSULTING SERVICE Balance Sheet December 31 Assets Cash $ ta Liabilities Accounts Payable Long - Term Notes Payable Total Liabilities Accounts Receivable Supplies Prepaid Insurance Equipment Less: Accum. Depr. - Equipment(Enter as a negative) Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ Total Assets $ Date General Journal Description $ Debit Credit Dec 31 TA $ To close the revenue account. 31 Rent Expense Salaries Expense Supplies Expense Insurance Expense Depreciation Expense Interest Expense To close the expense accounts. 31 - To close income summary. 31 To close the dividends account