Required information [The following information applies to the questions displayed below.] Stark company has the following adjusted accounts with normal balances at its December 31 year-end. Notes payable Prepaid insurance Interest expense $ 27,000 Accumulated depreciation-Buildings 4,100 Accounts receivable 820 Utilities expense 9,500 Interest payable $ 31,000 7,200 2,900 Accounts payable Wages payable Cash Wages expense 740 2,000 Unearned revenue 1,600 42,000 Supplies expense 520 9,100 Buildings 200,000 Insurance expense 3,400 Dividends 11,000 Common stock 26,000 Depreciation expense-Buildings 10,000 Services revenue 100,000 Supplies 1,600 Retained earnings 94,800 Use the adjusted accounts for Stark Company to prepare the (1) income statement and (2) statement of retained earnings for the year ended December 31 and (3) balance sheet at December 31. The Retained Earnings account balance was $94,800 on December 31 of the prior year. Income Statement Statement of Retained Balance Sheet Earnings Prepare the income statement for the year ended December 31. STARK COMPANY Income Statement For Year Ended December 31 Services revenue $ 100,000 Expenses Interest expense E 820 Wages expense Insurance expense Utilities expense 9,100 3,400 2,900 Supplies expense 520 Depreciation expense-Buildings 10,000 Total expenses 26,740 EA $ 73,260 Income Statement Statement of Retained Balance Sheet Earnings Prepare the statement of retained earnings for the year ended D $94,800 on December 31 of the prior year. STARK COMPANY Statement of Retained Earnings For Year Ended December 31 Retained earnings, December 31 prior year end $ 120,800 Add: Net income 73,260 194,060 Less: Dividends 11,000 Retained earnings, December 31 current year end $ 183,060 STARK COMPANY Balance Sheet December 31 Assets Cash Accounts receivable Supplies Prepaid insurance Buildings Accumulated depreciation-Buildings Total assets Accounts payable Wages payable Interest payable Unearned revenue Notes payable Total liabilities Common stock Retained earnings Total equity Total liabilities and equity $ 42,000 7,200 1,600 4,100 0 $ 54,900 Liabilities 9,500 2,000 740 1,600 27,000 40,840 Equity 0 $ 40,840