I need help , i been stuck on this question for a week now I cant get the NET INCOME ;(

Party Wagon, Inc., provides musical entertainment at weddings, dances, and various other functions. The company performs adjusting entries monthly, but prepares closing entries annually on December 31. The company recently hired Jack Armstrong as its new accountant. Jack's first assignment was an income statement, a statement of retained earnings, and a balance sheet using an adjusted trial balance given to him by his predecessor, dated December 31, current year.

From the adjusted trial balance, Jack prepared the following set of financial statements.

PARTY WAGON, INC.Income StatementFor the Year Ended December 31, current yearRevenue:Party revenue earned$156,000Unearned party revenue2,160Accounts receivable10,800Total revenue$168,960Expenses:Insurance expense$2,160Office rent expense14,400Supplies expense1,440Dividends1,200Salary expense90,000Accumulated depreciation: van19,200Accumulated depreciation: equipment and music16,800Repair and maintenance expense2,400Travel expense7,200Miscellaneous expense4,320Interest expense5,280164,400Income before income taxes$4,560Income taxes payable480Net income$4,080

PARTY WAGON, INC.Statement of Retained EarningsFor the Year Ended December 31, current yearRetained earnings (per adjusted trial balance)$18,000Add: Income4,080Less: Income taxes expense2,400Retained earnings Dec. 31, current year$19,680

PARTY WAGON, INC.Balance SheetDecember 31, current yearAssetsCash$18,000Supplies600Van$48,000Less: Depreciation expense: van9,60038,400Equipment and music$42,000Less: Depreciation expense: music and equipment8,40033,600Total assets$90,600Liabilities & Stockholders' equityLiabilities:Accounts payable$8,400Notes payable46,800Salaries payable1,920Prepaid rent2,400Unexpired insurance5,400Total liabilities$64,920Stockholders' equity:Capital stock6,000Retained earnings19,680Total stockholders' equity$25,680Total liabilities and stockholders' equity$90,600

Required:

a.Prepare a corrected set of financial statements dated December 31, current year. (You may assume that all of the figures in the company's adjusted trial balance were reported correctly except for Interest Payable of $240, which was mistakenly omitted in the financial statements prepared by Jack.)

b.Prepare the necessary year-end closing entries.

Complete this question by entering your answers in the tabs below.

• Income Statement
• Statement of RE
• Balance Sheet
• General Journal

Prepare the statement of retained earnings.

PARTY WAGON, INC.Statement of Retained EarningsFor the Year Ended December 31, Current YearRetained earnings (1/1/Current Year)$

18,000Add: Net income

Less: Dividends1,200Retained earnings (12/31/Current Year)$

20,400