Chapter 1, Problem 1.5BP

Tar Heel Corporation provides the following information at the end of 2018.

Prepare financial statements (LO1–3)

Salaries payable to workers at the end of the year	$ 3,300
Advertising expense for the year	10,400
Building that has been purchased	80,000
Supplies at the end of the year	4,600
Retained earnings	40,000
Utility expense for the year	6,000
Note payable to the bank	25,000
Service revenue earned during the year	69,400
Salary expense for the year	26,700
Accounts payable to suppliers	7,700
Dividends paid to shareholders during the year Common stock that has been issued, including	( ? )
$6,000 that was issued this year	27,000
Cash remaining	5,200
Interest expense for the year	2,100
Accounts receivable from customers	13,200

Required:

Prepare the income statement, statement of stockholders’ equity, and balance sheet for Tar Heel Corporation on December 31, 2018. The balance of retained earnings at the beginning of the year equals $26,800.