Problem 1-5B Prepare financial statements (LO1-3) 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 Required: 1. Prepare the income statement for the year ended December 31, 2021. 2. Prepare the statement of stockholders' equity for the year ended December 31, 2021. 3. Prepare the balance sheet for the year ended December 31, 2021. Complete this question by entering your answers in the tabs below. $ 2,600 9,700 73,000 3,900 37,800 5,300 21,500 65,900 26,000 7,000 (?) 25,000 4,500 1,750 12,500 24,950 1. Prepare the income statement for the year ended December 31, 2021. 2. Prepare the statement of stockholders' equity for the year ended December 31, 2021. 3. Prepare the balance sheet for the year ended December 31, 2021. Complete this question by entering your answers in the tabs below. 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 Service Revenue Expenses: Advertising Expense Utilities Expense Salaries Expense Interest Expense Total Expenses Net Income 0 < Prev 2 of 2 Next > Complete this question by entering your answers in the tabs below. 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 Beginning Balance Issuance of Common Stock Add: Net Income Less: Dividends Ending Balance Common Stock Retained Earnings Total Stockholders' Equity Required 1 Required 2 Required 3 Prepare the balance sheet for the year ended December 31, 2021. Cash S Accounts Receivable Supplies Building Assets TAR HEEL CORPORATION Balance Sheet December 31, 2021 Accounts Payable Salaries Payable Note Payable Liabilities Total Liabilities 0 Stockholders' Equity Common Stock Total Stockholders' Equity 0 Total Assets $ 0 Total Liabilities and Stockholders' Equity $ 0 < Required 2 Required 3>