Question

From the Adjusted Trial Balance, find the entry for the: Income Statement, Statement of Retained Earnings, and the Balance Sheet. (I have done the income statement, but couldn't get the answer for statement of retained earnings and balance sheet). Please let me know if you need more information and thank you so much for the help.

Sharpe Incorporated
Adjusted Trial Balance
December 31, 2020
Account Name	Debit	Credit
Cash	947,725
Accounts Receivable	1,475,000
Prepaid Insurance	22,875
Land	352,000
Equipment	195,000
Accumulated Depreciation		19,580
Vacation Pay Payable		11,880
Interest Payable		5,833
Notes Payable		38,840
Common Dividends Payable
Preferred Dividends Payable
Bonds Payable		1,000,000
Bond Discount	67,774
Common Stock		115,208
PIC in Excess of Par - Common Stock		664,392
Preferred Stock		189,000
PIC in Excess of Par - Preferred Stock		337,000
PIC - Treasury Stock
Stock Dividend Distributable
Retained Earnings		26,589
Treasury Stock	20,900
Fees Earned		1,975,000
Advertising Expense	140,000
Commissions Expense	63,000
Depreciation Expense	19,580
Insurance Expense	13,725
Legal & Accounting Expense	18,000
Medical Insurance Expense	32,000
Miscellaneous Expense	8,400
Rent Expense	170,000
Salary Expense	760,000
Utilities Expense	13,200
Vacation Pay Expense	11,880
Interest Expense	52,264
	4,383,322	4,383,322

Answer 1

Income Statement
Particulars	Amount	Amount
Fees Earned		1975000
Less: Expenses
Advertising Expense	140,000
Commissions Expense	63,000
Depreciation Expense	19,580
Insurance Expense	13,725
Legal & Accounting Expense	18,000
Medical Insurance Expense	32,000
Miscellaneous Expense	8,400
Rent Expense	170,000
Salary Expense	760,000
Utilities Expense	13,200
Vacation Pay Expense	11,880
Interest Expense	52,264
Total Expenses		1,302,049
Net income		672,951
Statement of retained Earnings
particulars	Amount	Amount
Beginning Retained Earnings		26589
Add: Net Income		672,951
Less: Dividend distributable to common Stock		0
Ending retained Earnings		699540

Balance Sheet
Assets	Amount	Amount
Current Assets
Cash	947725
Accounts receivable	1475000
Prepaid insurance	22875
Total Current Assets		2445600
Land		352000
Equipment	195000
Accumulated depreciation	19580	175420
Total Assets		2973020
Liabilities and Shareholder's Equity
Current liabilities
vacation pay payable	11880
interest payable	5833
Notes payable	38840
Total Current Liabilities		56553
Bond payable	1000000
Less: Discount	67774
		932226
Total Liabilities		988779
Shareholder's Equity
Preferred Stock	189000
Common Stock	115208
Treasury Stock	-20900
Paid in capital in Excess of par- preferred	337000
paid in capital in Excess of par- Common	664392
Total paid up Capital		1284700
Retained earnings(26589+672951)		699,540
Total liabilities and Shareholder's Equity		2,973,019

Note: Since there is $1 excess in the Debit balance of Adjusted Trial balance, hence that $1 extra is carried in Asset Balance