Question #1: 25 points

These account balances listed below were provided to you from the Horizon Corporation at the end of December 31, 2020.

Salaries and wages payable $ 2,580

Salaries and wages expense 39,850

Utilities expense 2,600

Equipment 21,000

Accounts payable 4,100

Service revenue 101,100

Advertising Expense 2,350

Notes payable (due 2025) 11,800

Common stock 16,000

Cash 50,200

Prepaid Insurance 3,600

Accounts receivable 29,180

Accumulated depreciationequipment 6,000

Dividends 5,000

Depreciation expense 3,000

Retained earnings (beginning of the year) 15,200

Instructions

(a) Prepare an income statement and a retained earnings statement for the year ended December 31, 2020.

(b) Prepare a classified balance sheet at December 31, 2020.

Be sure to prepare all statements in good form with proper format, including headings and dates.