Stark company has the following adjusted accounts with normal balances at its December 31 year-end. Notes payable Prepaid insurance Interest expense Accounts payable Wages payable Cash Wages expense Common stock Services revenue $ 30,000 Accumulated depreciation-Buildings 4,400 Accounts receivable 880 Utilities expense 11,000 Interest payable 2,300 Unearned revenue 48,000 Supplies expense $ 34,000 7,800 3,200 860 1,750 580 9,400 Buildings 230,000 Insurance expense 3,700 Dividends 12,500 29,000 Depreciation expense-Buildings 11,500 115,000 Supplies Retained earnings 1,750 109,800 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 $109,800 on December 31 of the prior year. Income Statement Statement of Balance Sheet Retained Earnings Prepare the income statement for the year ended December 31. STARK COMPANY Income Statement For Year Ended December 31 Services revenue $ 115,000 Expenses Wages expense Insurance expense $ 9,400 3,700 Supplies expense 580 Utilities expense 3,200 Depreciation expense-Buildings 11,500 Interest expense 880 Total expenses 29,260 $ 85,740 Income Statement Statement of Retained Earnings Balance Sheet Prepare the statement of retained earnings for the year ended December 31. The Retained Earnings account bala $109,800 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 Add: Net income $ 109,800 85,740 195,540 12,500 183,040 Less: Dividends Retained earnings, December 31 current year end < Income Statement Balance Sheet > Statement of Income Statement Retained Balance Sheet Earnings Prepare the balance sheet at December 31. Cash Accounts receivable Prepaid insurance Supplies Buildings STARK COMPANY Balance Sheet December 31 Assets Accumulated depreciation-Buildings Total assets Accounts payable Interest payable Wages payable Liabilities $ 48,000 7,800 4,400 1,750 230,000 230,000 $ 291,950 11,000 860 2,300