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4a) 4pp
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Note The numbers are not at all legible due to bad quality picture. Hence, i have taken the numbers based on a similar problem for which I provided the solution in the past. The numbers may be different but the concept provided in the solution is correct. You may please change the numbers at your end please.

Accounts payable

$ 5,000

Notes payable

$ 7,000

Accounts receivable

2,000

Rent expense

10,000

Advertising expense

4,000

Retained earnings

?

Cash

3,100

Service revenue

25,000

Common stock

15,000

Supplies

1,900

Dividends

2,500

Supplies expense

1,700

Equipment

26,800

Answer

MARSH CORPORATION Income Statement For the Year Ended December 31, 2014 Revenues Service Revenue Expenses Advertising Expense Rent Expense Supplies Expense Total Expenses Net Income (Loss) 25,000 4,000 10,000 1,700 15,700 9,300 MARSH CORPORATION Retained Earnings Statement For the Year Ended December 31, 2014 Retained Earnings, January 1 Add: Net Income (Loss) 0 9,300 9,300 Less: Dividends Retained Earnings, December 31 2,500 6,800

MARSH CORPORATION Balance Sheet 31-Dec-14 Assets Cash Accounts Receivable Supplies Equipment Total Assets Liabilities and Stockholders Equity Liabilities Accounts Payable Notes Payable Total Liabilities Stockholders Equity Common Stock Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders Equity 3,100 2,000 1,900 26,800 33,800 5,000 7,000 12,000 15,000 6,800 21,800 33,800

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