Problem 3-5B Prepare financial statements from an adjusted trial balance (LO3-5) Orange Designs provides consulting services related to home decoration. Orange Designs provides customers with recommendations for a full range of home decor, including window treatments, carpet and wood flooring, paint colors, furniture, and much more. Below is the year-end adjusted trial balance of Orange Designs Credits Debits $ 5,800 4.800 2.800 6.800 118.000 ORANGE DESIGNS Adjusted Trial Balance December 31, 2021 Accounts Cash Accounts Receivable Supplies Prepaid Rent Buildings Accumulated Depreciation Accounts Payable Salaries Payable Utilities Payable Notes Payable (due in four years) Common Stock Retained Earnings Service Revenues Salaries Expense Rent Expense Depreciation Expense Supplies Expense Advertising Expense Utilities Expense Interest Expense Totals $ 21,800 3.800 4.800 1.200 28.000 58.000 15.800 112.400 42,800 18 800 7.800 8.800 13.800 12.800 2.800 $245,800 $245,800 Required: 1. Prepare an income statement for the year ended December 31, 2021 2. Prepare the statement of stockholders' equity, note that during the year the company issued additional common stock of $12,000. Next > Accounts Receivable Supplies Prepaid Rent OOO 3,800 4,800 1,200 20,200 $ 9,800 Total Current Assets Long-term Assets: Buildings Accumulated Depreciation Total Current Liabilities Long-term Liabilities: Notes Payable 28,000 >> 118,000 (28,000) 37,800 Total Liabilities Stockholders' Equity Common Stock Retained Earnings 58,000 15,800 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 73,800 $ 111,600 $ 110,200 Total Assets Required 3