Based on the Following Trial Balance for Sally's Salon,prepare an Income

question 122

Essay

Based on the following trial balance for Sally's Salon,prepare an income statement,statement of retained earnings,and a balance sheet.Sally Crawford,the sole stockholder,made no additional investments in the company during the year.
$\begin{array}{c} \text { Sally's Salon}\\ \text { Trial Balance}\\ \text { December 31}\\\begin{array}{|l|r|r|}\hline \text { Cash } & \$ 6,500 \\\hline \text { Accounts receivable } & 475 \\\hline \text { Beauty supplies } & 2,500 \\\hline \text { Beauty shop equipment } & 17,00 \\\hline \text { Accounts payable } & & \$ 745 \\\hline \text { Common Stock } & & 21,155 \\\hline \text { Dividends } & 36,000 & \\\hline \text { Revenue earned } & & 72,000 \\\hline \text { Beauty supplies expense } & 3,429 & \\\hline \text { Rent expense } & 6,000 & \\\hline \text { Wages expense } & 22,000 & \\\hline \text { Totals } & \$ 93,900 & \$ 93,900 \\\hline \end{array}\end{array}$