Scho Business School The following list, in alphabetical order, shows the various items that regularly appear on the financial of Great Audio Book Rental Corp. The amounts shown for balance sheet items are Exercise 1 balances as of December on January 1, 2014). and the amounts shown for income statement items are 31, 2014 (with the exception of retained earnings, which is the balance balances for the year ended December 31, 2014 s 4.500 Notes payable 10,000 125,900 300 Rental revenue 16,200 Rent expense Capital stock 50,000 Retained earnings 35,200 17,900 70,000 Cash 2,600 Salaries and wages expense Display fxctures Dividends paid during the year 5,000 Supplies inventory 10,000 Water, gas, and electricity 3,600 1. Prepare an income statement for the year ended December 31, 2014. 2. Prepare a statement of retained earnings for the year ended December 31, 2014. 3. Prepare a balance sheet at December 31, 2014