Question

Tar Heel Corporation provides the following information at the end of 2021. $ 2,000 9,100 67,000 3,300 32, 200 4,700 18,500 62,900 25,400 6,400 (?) 27,000 3,900 1,450 11,900 19,650 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 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 income statement for the year ended December 31, 2021. TAR HEEL CORPORATION Income Statement

Answer 1

Income statement
Revenues:
service revenue			62900
expenses:
advertising expenses		9100
utilities expenses		4700
salaries expenses		25400
interest expenses		1450
Total expenses			40650
Net income			22250
statement of stockholder's equity
		Common stock	Retained earning	total stockholer equity
Balance at the beginning		21000	19650	40650
stock issuance		6000		6000
add: net income			22250	22250
less: dividend			-9700	-9700
balance at the end		27000	32200	59200
Dividend = 19650+22250-32200 = 9700
Balance sheet
assets			liabilities
cash		3900	accounts payable			6400
account receivables		11900	salaries payable			2000
supplies		3300	notes payable			18500
Building		67000	total liabilities			26900
			stockholder equity
			common stock			27000
			retained earning			32200
			total stockholder equity			59200
Total assets		86100	total liabilities & stockholder equity			86100

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