Use the adjusted trial balance to prepare the income statement and statement if retained earnings. they need to be completed in the order listed above as there are interdependencies among them.

2018 Unadjusted trial balance Adjusting entries Debit Credit 32,236.75 175.65 175.65 1,500.00 2,400.00 Prepaid Rent Prepaid Insurance 6,000.00 550.00 ,700.00 10,000.00 5,000.00 16,000.00 55,000.00 10,000.00 5,000.00 16,000.00 Accounts Payable mon Stock 10,000.00 Dividends 10,000.00 Merchandise Sales Baking Supplies Expense Rent Ex Interest Expense Insurance Expense Depreciation Expense Misc. E Office Supplies Expense Business License Expense 17,400.00 17,400.00 4,500.00 2400.00 2,400.00 250.00 250.00 550.00 375.00 250.00 375.00 200.00 1,956.00 150.00 157.60 1,956.00 150.00 157.60 Telephone Expense COGS (FIFO) 6,701.0086,701.00 20.,650.00 20,650.00 87.001.00 87.001.00 Total: (FIFO) Income Statement Revenues: Total Revenues Cost of Goods Sold Gross Profit (FIFO) Operating Expenses Total Operating Expenses: Net Income (FIFO) Peyton Approve Statement of Retained Earnings or Qtr. Ending Beginning Balance plus Net Income (FIFO) less Dividends Ending Balance (FIFO)