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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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