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 $5,000 that was issued this year Cash remaining Interest expense for the year Accounts receivable from customers Retained earnings at the beginning of the year $ 3.200 10.300 79,000 4.500 41,400 5,900 24,500 68.900 26,600 7,600 (2) 25.000 5,100 2,050 13, 100 29.250 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 i Required 2 Required 3 Prepare the statement of stockholders' equity for the year ended December 31, 2021. TAR HEEL CORPORATION Statement of Stockholders' Equity For the year ended December 31, 2021 Common Stock Retained Earnings Total Stockholders Equity Beginning Balance Ending Balance (Required 1 Required 3 >

Answer 1

Beginning Balance Add: issue During the Year Add: Net Income Less: dividends Ending Balance TAR HEEL CORPORATION Statement of stockholders' equity For the year ended December 31, 2021 Common stock Retained Earnings Total stockholders' equity 20,000 $ 28,250 $ 48,250 $ 5,000 5,000 24,050 $ 24.050 10,900 $ 10.900 25,000 $ 41,400 $ 66,400 Dividends = $28,250-$24,050-$41,400 = $10,900 68,900 Working Notes: TAR HEEL CORPORATION Income Statement For the year ended December 31, 2021 Revenue Service Revenue Expenses : Salaries Expense 26,600 Interest expense 2,050 Advertising Expense 10,300 Utilities Expense 5.900 Total expenses Net Income 44,850 24.050

Assets Current assets : Cash Accounts Receivables Supplies Total current assets Property. Plant and Equipment Equipment Building Total Property, plant and Equipment TAR HEEL CORPORATION Balance Sheet Dec.31.2021 Liabilities Current Liabilities $ 5,100 Accounts Payable $ 13,100 Salaries Payable $ 4,500 Total current Liabilities $ 22,700 Notes payable Total liabilities Stockholders' equity $ 79,000 Common stock $ 79,000 | Retained Earnings Total stockholdes' equity $ 101,700 Total Liabilities and Stock holders' equity $ 7,600 $ 3,200 $ 10,800 $ 24,500 $ 35,300 $ 25,000 $ 41,400 $ 66,400 $ 101,700 Total Assets