Required information Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet and Interpreting the Financial Statements (LO 1-2, LO 1-3) [The following information applies to the questions displayed below.) Assume you are the president of Nuclear Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Accounts Payable Accounts Receivable Cash Common Stock Dividends Equipment Notes Payable Operating Expenses Other Expenses Sales Revenue Supplies $ 34,000 60,100 14,000 63,280 240 33,000 1,510 63,200 9,050 89,400 8,600 eu. 16 1. Prepare an income statement for the year ended December 31. TIP: Begin by classifying each account as asset, liability, stockholders' equity, revenue, or expense. Each account is reported on only one financial statement. ok nces NUCLEAR COMPANY Income Statement For the Year Ended December 31 0 2. Prepare a statement of retained earnings for the year ended December 31. TIP: Because this is the first year of operations, the beginning balance in Retained Earnings will be zero. NUCLEAR COMPANY Statement of Retained Earnings Retained Earnings, January 1 Retained Eamings, December 31 3. Prepare a balance sheet at December 31. TIP: The balance sheet includes the ending balance from the statement of retained earnings. NUCLEAR COMPANY Balance Sheet 0 0 0 0 co n Neyt