Presented here are the accounts of Town and Country RealtyTown and Country Realty for the year ended December 31, 2018.

Requirements

1. Prepare Town and Country Realty's income statement.

2. Prepare the statement of retained earnings.

3. Prepare the balance sheet

Land $ 5,000 Common Stock $ 26,000

Notes Payable 32,000 Accounts Payable 8,000

Property Tax Expense 2,900 Accounts Receivable 1,200

Dividends 33,000 A Advertising Expense 12,000

Rent Expense 11,000 Building 147,700

Salaries Expense 65,000 Cash 3,600

Salaries Payable 900 Equipment 11,000

Service Revenue 192,000 Insurance Expense 2,100

Office Supplies 9,000 Interest Expense 7,400

Retained Earnings, Dec. 31, 2017 52,000