Problem 1-5B Prepare financial statements (L01-3) Tar Heel Corporation provides the following Information at the end of 2021 Salaries payable to workers at the end of the year Advertising expense for the year Building that has been purchased Supplies at the end of the year Retained earnings Utility expense for the year Note payable to the bank Service revenue recognized during the year Salary expense for the year Accounts payable to suppliers Dividends paid to shareholders during the year Common stock that has been issued, including $5,000 that was issued this year Cash remaining Interest expense for the year Accounts receivable from customers Retained earnings at the beginning of the year $1,500 8,600 62,600 2,800 31,200 4,200 16,000 60,400 24,900 5,900 (2) 25,000 3,400 1,200 11,400 18,900 Required 1 Required 2 Required 3 Prepare the income statement for the year ended December 31, 2021. TAR HEEL CORPORATION Income Statement For the year ended December 31, 2021 Expenses: Total Expenses 0 Required 1 Required 2 Required 3 Prepare the statement of stockholders' equity for the year ended December 31, 2021. + TAR HEEL CORPORATION Statement of Stockholders' Equity For the year ended December 31, 2021 Retained Total Common Stock Stockholders Earnings Equity Beginning Balance Add: Dividends Ending Balance AFFORDOBAR December 31, 2021 Assets Liabilities 0 Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity 0 Total Assets