Financial Statements and Closing Entries

The adjusted trial balance shown below is for Sharpe 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 Retained Earnings in general journal form.Income Statement

Statement of Stockholders Equity

Balance Sheet

Journal Entries

NOTE: Do not use negative signs with answers, unless otherwise noted $($such as dividends, accumulated depreciation$).$

SHARPE CONSULTING SERVICE

Income Statement

For Year Ended December $31$

$\backslash$table$[[$Revenue$,,],[$Service Fees Earned,$$,],[$Expenses$,,],[$Rent Expense,,$],[$Salaries Expense,,$],[$Supplies Expense,,$],[$Insurance Expense,,$],[$Depreciation Expense$-$Equipment,,$],[$Interest Expense,,$],[$Total Expenses,,$