Following are the accounts and balances from the adjusted trial balance of Stark Company. Notes payable Prepaid insurance Interest expense Accounts payable Wages payable Cash Wages expense Insurance expense Stark, Capital Services revenue $ 11,000 Accumulated depreciation-Buildings 2,500 Accounts receivable 500 Utilities expense 1,500 Interest payable 400 Unearned revenue 10,000 Supplies expense 7,500 Buildings 1,800 Stark, Withdrawals 24,800 Depreciation expense-Buildings 20,000 Supplies $ 15,000 4,000 1,300 100 800 200 40,000 3,000 2,000 800 Prepare the (1) income statement and (2) statement of owner's equity for the year ended December 31, and (3) balance sheet at December 31. The Stark, Capital account balance was $24,800 on December 31 of the prior year. Prepare the income statement for the year ended December 31. STARK COMPANY Income Statement For Year Ended December 31 Services revenue 20,000 Expenses Wages expense Insurance expense Supplies expense Utilities expense Depreciation expense-Buildings Interest expense 7,500 1,800 200 1,300 2,000 500 Total expenses Net income 13,300 6,700 $ STARK COMPANY Statement of Owner's Equity For Year Ended December 31 Stark, Capital, Dec. 31 prior year end Add: Net income IS 24,800 6,700 31,500 3,000 28,500 Less: Withdrawals Stark, Capital, Dec. 31 current year end $ STARK COMPANY Balance Sheet December 31 Assets Cash Accounts receivable Prepaid insurance Supplies >>> $ 10,000 4,000 2,500 800 0 $ 17,300 Total assets Liabilities Accounts payable Interest payable Wages payable Unearned revenue OOO 1,500 100 400 800 Total liabilities 2,800 Equity Notes payable Stark, Capital Total liabilities and equity 11,000 28,500 $ 42,300