Question

Tar Heel Corporation provides the following information at the end of 2021. Salaries payable to workers at the end of the year Advertising expense for the year Building that has been purchased Supplies at the end of the year Retained earnings Utility expense for the year Note payable to the bank Service revenue recognized during the year Salary expense for the year Accounts payable to suppliers Dividends paid to shareholders during the year Common stock that has been issued, including $6,000 that was issued this year Cash remaining Interest expense for the year Accounts receivable from customers Retained earnings at the beginning of the year $ 1.400 8.500 61,000 2,700 28,600 4,100 15,500 59,900 24,800 5,800 (?) 27,000 3,300 1,150 11,300 - 16,350 Required: 1. Prepare the income statement for the year ended December 31, 2021. 2. Prepare the statement of stockholders' equity for the year ended December 31, 2021. 3. Prepare the balance sheet for the year ended December 31, 2021 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the balance sheet for the year ended December 31, 2021. TAR HEEL CORPORATION Balance Sheet < Prev 11 of 11 Next MacBook Pro

Answer 1

INCOME STATEMENT
Revenues:
Service Revenue		$        59,900
Expenses:
Salaries expense	$           24,800
Utilities expense	$             4,100
Advertising expense	$             8,500
Interest expense	$             1,150	$        38,550
Net income		$        21,350
STATEMENT OF STOCKHOLDERS' EQUITY
	Common Stock	Retained Earnings	Total Stockholders' Equity
Beginning balances, January 1	$           21,000	$        16,350	$             37,350
Issuance of common stock	$             6,000	$                 -	$               6,000
Net income for the period	$                    -	$        21,350	$             21,350
Dividends paid		-$          9,100	-$              9,100
Ending balances, December 31	$           27,000	$        28,600	$             55,600
BALANCE SHEET
Assets
Current assets:
Cash	$             3,300
Accounts receivable	$           11,300
Supplies	$             2,700
Total current assets		$        17,300
Non-Current assets:
Building	$           61,000
Total non-current assets		$        61,000
Total assets		$        78,300
Total liabilities and Stockholders' equity
Accounts payable	$             5,800
Salaries payable	$             1,400
Note payable	$           15,500
Total liabilities		$        22,700
Stockholders' Equity:
Common stock	$           27,000
Retained earnings	$           28,600
Total stockholders' equity		$        55,600
Total liabilities and Stockholders' equity		$        78,300