Financial Statements and Closing Entries The adjusted trial balance shown below is for Fine Consulting Service as of December 31. Byran Fine made no capital contributions during the year.

FINE CONSULTING SERVICE Adjusted Trial Balance December 31
	Debit		Credit
Cash	$2,700
Accounts Receivable	3,270
Supplies	3,060
Prepaid Insurance	1,500
Equipment	6,400
Accum. Depr. - Equipment			$1,080
Accounts Payable			845
Long - Term Notes Payable			7,000
Common Stock			2,000
Retained Earnings			5,205
Dividends	2,900
Service Fees Earned			58,400
Rent Expense	12,000
Salaries Expense	33,400
Supplies Expense	4,700
Insurance Expense	3,250
Depreciation Expense-Equipment	720
Interest Expense	630
Totals	$74,530		$74,530

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.

a.

	FINE CONSULTING SERVICE Income Statement For Year Ended December 31
	Revenue
	Service Fees Earned			$Answer
	Expenses
	Rent Expense	Answer
	Salaries Expense	Answer
	Supplies Expense	Answer
	Insurance Expense	Answer
	Depreciation Expense-Equipment	Answer
	Interest Expense	Answer
	Total Expenses			Answer
	Net Income			$Answer

FINE CONSULTING SERVICE Statement of Stockholders' Equity For Year Ended December 31
	Common Stock		Retained Earnings		Total
Balance, January 1	$Answer		$Answer		$Answer
Add: Net Income	Answer		Answer		Answer
Less: Dividends paid (enter as a negative)	Answer		Answer		Answer
Balance, December 31	$Answer		$Answer		$Answer

FINE CONSULTING SERVICE Balance Sheet December 31
Assets			Liabilities
Cash		$Answer	Accounts Payable	$Answer
Accounts Receivable		Answer	Long - Term Notes Payable	Answer
Supplies		Answer	Total Liabilities	Answer
Prepaid Insurance		Answer
Equipment	Answer		Stockholders Equity
Less:Accum. Depr. - Equipment (enter as a negative)	Answer	Answer	Common Stock	Answer
			Retained Earnings	Answer
			Total Stockholders' Equity	Answer
Total Assets		$Answer	Total Liabilities and Stockholders' Equity	$Answer

b.

	General Journal
Date		Description	Debit	Credit
Dec	31	AnswerAccounts PayableAccounts ReceivableAccum. Depr. - EquipmentCashDepreciation ExpenseDividendsEquipmentIncome Tax ExpenseInsurance ExpenseInterest ExpenseLong - Term Notes PayablePrepaid InsuranceRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSuppliesSupplies Expense	$Answer	$Answer
		AnswerAccounts PayableAccounts ReceivableAccum. Depr. - EquipmentCashDepreciation ExpenseDividendsEquipmentIncome Tax ExpenseInsurance ExpenseInterest ExpenseLong - Term Notes PayablePrepaid InsuranceRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSuppliesSupplies Expense	Answer	Answer
		To close the Revenue account.
	31	AnswerAccounts PayableAccounts ReceivableAccum. Depr. - EquipmentCashDepreciation ExpenseDividendsEquipmentIncome Tax ExpenseInsurance ExpenseInterest ExpenseLong - Term Notes PayablePrepaid InsuranceRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSuppliesSupplies Expense	Answer	Answer
		Rent Expense	Answer	Answer
		Salaries Expense	Answer	Answer
		Supplies Expense	Answer	Answer
		Insurance Expense	Answer	Answer
		Depreciation Expense-Equipment	Answer	Answer
		Interest Expense	Answer	Answer
		To close the expense accounts.
	31	AnswerAccounts PayableAccounts ReceivableAccum. Depr. - EquipmentCashDepreciation ExpenseDividendsEquipmentIncome Tax ExpenseInsurance ExpenseInterest ExpenseLong - Term Notes PayablePrepaid InsuranceRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSuppliesSupplies Expense	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableAccum. Depr. - EquipmentCashDepreciation ExpenseDividendsEquipmentIncome Tax ExpenseInsurance ExpenseInterest ExpenseLong - Term Notes PayablePrepaid InsuranceRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSuppliesSupplies Expense	Answer	Answer
		To close the dividends account.