Terrell Co. reported the following data at the end of its first year of operations on December 31.

Equipment	$	27,500
Accounts payable		16,500
Common stock		31,500
Dividends		14,500
Services revenue		76,500
Rent revenue		18,500
Salaries expense		46,500
Advertising expense		12,500
Utilities expense		10,500

(a) Prepare its year-end income statement. (b) Prepare its year-end statement of retained earnings, using net income calculated in part a.

Prepare its year-end income statement.

• Required a

TERRELL CO.
Income Statement
For Year Ended December 31
Revenues
Total revenue		$0
Expenses
Total expenses		0
		$0

B

TERRELL CO.
Statement of Retained Earnings
For Year Ended December 31
	0
	$0

• Required A