Prepare Debit Company's income statement and statement of retained earnings for the year ended December 31, 20X7

Income Statement Revenue Expenses Total Expenses Net Income Statement of Retained Earnings Beginning Retained Earnings Net Income Less: Dividends Ending Retained Earnings Debit Company Adjusted Trial Balance December 31, 20X7 $4,000 2,000 Cash $6,500 Accounts receivable 8,000 Supplies 1,000 Prepaid Rent (3 months) 2,500 Equipment, net 42,000 Accounts payable Salary payable Unearned revenue (2 month advance) Note payable - long term Common stock Retained earnings Dividends 4,000 Service revenue Salary expense 40,000 Rent expense 10,000 Supplies expense 1,500 Depreciation expense 5,000 Utilities expense 1,200 2,000 14,000 10,000 14,700 75,000 Total $121,700 $121,700 *Assume 30% income tax Prepare Debit Company's income statement and statement of retained earnings for the w ended December 31, 20X7. a t