Based on the Following Trial Balance for Barry's Automotive Shop

question 1

Essay

Based on the following trial balance for Barry's Automotive Shop, prepare an income statement, statement of retained earnings, and a balance sheet. There were no additional stock issuances during the year.
Barry's Automotive Shop
Trial Balance
December 31
$\begin{array}{lr}\text { Cash } & \$ 12,500 \\\text { Accounts receivable } &1,500 \\\text { Supplies } & 500 \\\text { Repair shop equipment } & 27,000 \\\text { Service truck } & 33,000\\\text { Accounts payable } && \$ 2,600 \\\text { Common Stock } && 30,000 \\\text { Retained Earnings } && 8,525 \\\text { Dividends } & 36,000\\\text { Service revenue } & & 125,00 \\\text { Supplies expense } & 3,425 & \\\text { Rent expense } & 18,000&\\\text { Utilities expense } & 5,000 \\\text { Gas expense } & 7,200 \\\text { Wages expense } & 22,000 \\\text { Totals } & \$ 166,125&\$166,125\end{array}$

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Definitions:

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Rapid Sales Growth

A significant increase in the volume of sales over a short period, indicating business expansion.