Prepare a statement of retained earnings for the 12 months ended December 31.

Prepare a balance sheet as of December 31.

Prepare closing entries for the period ended December 31.

use the following journal entries

A)Journal Entries:
Date	Accounts	Debit $	Credit $
Jan-01	Cash	910000
	Equipment	330000
	Common Stock		1000000
	APIC - CS		240000
	(cash and equipment brought as investment)
Jan-01	Prepaid insurance	108000
	Cash		108000
	(prepaid insurance raised for 24 months)
Feb-01	Cash	130000
	Note Payable		130000
	(borrowing done and 6% note issued)
Mar-01	Cash	325000
	Service revenue		325000
	(services provided for cash)
Jul-01	Cash	388000
	Discount on Bond Payable	12000
	Bond Payable		400000
	(issue of bonds at discount)
Dec-31	Interest exp.	5200
	Discount on Bond Payable		1200	12000/10
	Cash		4000	400000*1%
	(interest paid and discount amortised)
Dec-31	Interest expense	3575		130000*3%*11/12
	Note Payable	45059
	Cash		48634
	(first annual installment of note made)
Dec-31	Dividend expense	100000
	Dividend payable		100000
	(dividend made payable, record date Jan 20)
Dec-31	Depreciation exp.	66000		330000/5
	Acc Depreciation-equip		66000
	(depreciation on equip booked)
Dec-31	Insurance exp.	54000		108000*12/24
	Prepaid Insurance		54000
	(insurance for the year booked)