The following information relates to Company VWX as of December 31, 2025:

• Cash: $68,000
• Accounts Receivable: $29,000
• Inventory: $48,000
• Building: $190,000
• Accumulated Depreciation: $32,000
• Accounts Payable: $24,000
• Notes Payable: $53,000
• Common Stock: $95,000
• Retained Earnings: $60,000
• Service Revenue: $170,000
• Salaries Expense: $37,000
• Rent Expense: $19,000
• Utilities Expense: $10,000
• Insurance Expense: $7,000
• Dividends: $13,000

Requirements:

1. Prepare the trial balance for Company VWX.
2. Prepare the income statement for the year ended December 31, 2025.
3. Prepare the statement of retained earnings for the year ended December 31, 2025.
4. Prepare the balance sheet as of December 31, 2025.
5. Identify any discrepancies and explain how they should be rectified.