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Stark company has the following adjusted accounts with normal balances at its December 31 year-end. Account Title Debit Credit Cash $10,000 Accounts receivable 4,000 Supplies

Stark company has the following adjusted accounts with normal balances at its December 31 year-end.
Account Title Debit Credit
Cash $10,000
Accounts receivable 4,000
Supplies 800
Prepaid Insurance 2,500
Building 400,000
Accounts payable $1,500
Wages payable 400
Notes payable 11,000
Interest payable 100
Unearned revenue 800
Common stock 385,000
Retained earnings 14,800
Dividends 3,000
Services revenue 20,000
Supplies expense 200
Interest expense 500
Utilities expense 3,300
Wages expense 7,500
Insurance expense 1,800
$433,600 $433,600
Note: The Retained Earnings account balance is $14,800 at December 31, 2020.
(1) Prepare the income statement for the year ended December 31, 2021.
(2) Prepare the statement of retained earnings for the year ended December 31, 2021.
Stark Company
Income Statement
Revenues
Building
Expenses
Total expenses
Stark Company
Statement of Retained Earnings
Retained earnings, December 31, 2020
Retained earnings, December 31, 2021
Stark Company
Balance Sheet
Assets:
Total assets
Liabilities:
Total liabilities
Equity:
Total equity
Total liabilities and equity

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