Here are the assets, liabilities, and common stock of the Newcastle Company at December 31, 2021, and the revenues and expenses for the month of December, its first month of operations:

Prepare an income statement, retained earnings statement, and balance sheet using the amounts listed below.

Cash		$ 4,600		Notes payable		$12,000
Accounts receivable		4,000		Accounts payable		500
Sales revenue		8,500		Supplies expense		1,000
Cost of goods sold		3,100		Inventory		1,600
Supplies		2,400		Maintenance and repairs expense		600
Advertising expense		400		Utilities expense		300
Equipment		26,000		Salaries and wages expense		1,400
Common stock		24,800

During June, the company paid dividends of $400.

Requirement 1: In simple form, prepare the Income Statement for the year ended December 31, 2021.

Newcastle Company Income Statement For the month ended December 31, 2021
Revenues:
Service revenues		8500
Expenses:
Advertising expenses	400
Supplies expenses	1000
Maintenance and repairs expenses	600
Utilities expenses	300
Salaries and wage expenses	1400
Total Expense		3700
Net Income		4800

Requirement 2: Prepare the Retained Earnings Statement for the year ended December 31, 2021.

Newcastle Company Retained Earnings Statement For the month ended December 31, 2021
Retained earnings, December 1, 2021
Add: Net income		1,700
Less: Dividends		(400)
Retained earnings, December 31, 2021		1,300

Requirement 3: In simple form, prepare the Balance Sheet as of December 31, 2021.

Newcastle Company Balance Sheet December 31, 2021
Cash
Accounts Receivable
Supplies
Equipment
Total Assets
Liabilities and Stockholder Equity
Current Assets:
Accounts payable
Notes payable
Total current liability
Stockholders equity
Common stock
Retained Earnings
Total Stockholder Equity
Total Liabilities and Stockholders Equity