Preparing Financial Statements Brown Inc prepared the following adjusted trial balance on December 31, 2020, based on its first year of operations Using this adjusted trial balance, prepare an income statement for the year ended December 31, 2020, and a balance sheet as of December 31, 2020 Adjusted Trial Balance December 31, 2020 Accounts Debit Credit Cash $ 6,600 $ Accounts receivable 3,000 Prepaid insurance 1,200 Other assets 5,200 Equipment, net 20,000 Accounts payable 4,000 Note payable 8,000 Common stock 8,000 Service revenue 40,000 Selling expenses 8,000 General and administrative expenses 15,000 Interest expense 1,000 Totals $60,000 $60,000 Income Statement Balance Sheet Brown Inc Income Statement For the Year Ended December 31, 2020 Revenues Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesTotal assetsTotal expensesTotal liabilitiestotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesTotal assetsTotal expensesTotal liabilitiestotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity Expenses Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesTotal revenueTotal assetsTotal expensesTotal liabilitiestotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity General administrative expenses Interest expense Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesTotal revenueTotal assetsTotal equityTotal liabilitiestotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesTotal revenueTotal assetsTotal expensesTotal liabilitiestotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity Preparing Financial Statements Brown Inc prepared the following adjusted trial balance on December 31, 2020, based on its first year of operations Using this adjusted trial balance, prepare an income statement for the year ended December 31, 2020, and a balance sheet as of December 31, 2020 Adjusted Trial Balance December 31, 2020 Accounts Debit Credit Cash $ 6,600 $ Accounts receivable 3,000 Prepaid insurance 1,200 Other assets 5,200 Equipment, net 20,000 Accounts payable 4,000 Note payable 8,000 Common stock 8,000 Service revenue 40,000 Selling expenses 8,000 General and administrative expenses 15,000 Interest expense 1,000 Totals $60,000 $60,000 Income Statement Balance Sheet Brown Inc Balance Sheet December 31, 2020 Assets Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiestotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity Accounts receivable Prepaid insurance Other assets Equipment, net Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueSalesTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity Liabilities Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity Notes payable Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity Stockholders' Equity Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity

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Preparing Financial Statements Brown Inc. prepared the following adjusted trial balance on December 31, 2020, based on its first year of operations. Using this adjusted

Preparing Financial Statements

Brown Inc. prepared the following adjusted trial balance on December 31, 2020, based on its first year of operations. Using this adjusted trial balance, prepare an income statement for the year ended December 31, 2020, and a balance sheet as of December 31, 2020.

Adjusted Trial Balance
December 31, 2020
Accounts	Debit	Credit
Cash	$ 6,600	$
Accounts receivable	3,000
Prepaid insurance	1,200
Other assets	5,200
Equipment, net	20,000
Accounts payable		4,000
Note payable		8,000
Common stock		8,000
Service revenue		40,000
Selling expenses	8,000
General and administrative expenses	15,000
Interest expense	1,000
Totals	$60,000	$60,000

Income Statement
Balance Sheet

Brown Inc.
Income Statement
For the Year Ended December 31, 2020
Revenues
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesTotal assetsTotal expensesTotal liabilitiestotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesTotal assetsTotal expensesTotal liabilitiestotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity
Expenses
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesTotal revenueTotal assetsTotal expensesTotal liabilitiestotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity
General administrative expenses
Interest expense
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesTotal revenueTotal assetsTotal equityTotal liabilitiestotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesTotal revenueTotal assetsTotal expensesTotal liabilitiestotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity

Preparing Financial Statements

Adjusted Trial Balance
December 31, 2020
Accounts	Debit	Credit
Cash	$ 6,600	$
Accounts receivable	3,000
Prepaid insurance	1,200
Other assets	5,200
Equipment, net	20,000
Accounts payable		4,000
Note payable		8,000
Common stock		8,000
Service revenue		40,000
Selling expenses	8,000
General and administrative expenses	15,000
Interest expense	1,000
Totals	$60,000	$60,000

Income Statement
Balance Sheet

Brown Inc.
Balance Sheet
December 31, 2020
Assets
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiestotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity
Accounts receivable
Prepaid insurance
Other assets
Equipment, net
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueSalesTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity
Liabilities
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity
Notes payable
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity
Stockholders' Equity
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity
Accounts payableCashCommon stockNet incomeRetained earningsSelling expensesService revenueTotal assetsTotal expensesService revenueTotal assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders' equityTotal revenuesTotal stockholders' equity