Based on the following trial balance for Barry's Automotive Shop, prepare an income statement, statement of retained earnings, and a balance sheet. Barry, the company's sole stockholder, made no additional investments in the company during the year.Barry's Automotive ShopTrial BalanceDecember 31Cash $ 12,500?Accounts receivable 1,500?Supplies 500?Repair shop equipment 27,000?Service truck 33,000?Accounts payable ?$ 2,600Common stock ?30,000Retained earnings ?8,525Dividends 36,000?Service revenue ?125,000Supplies expense 3,425?Rent expense 18,000?Utilities expense 5,000?Gas expense 7,200?Wages expense 22,000?Totals $166,125$166,125
What will be an ideal response?
| Barry's Automotive Shop |
| Income Statement |
| For Year Ended December 31 |
| Service revenue ………………………. ? | ? | $125,000 |
| Expenses: | ? | ? |
| Supplies expense…………………… | $ 3,425 | ? |
| Rent expense……………………….. | 18,000 | ? |
| Utilities expense…………………….. | 5,000 | ? |
| Gas expense………………………..... | 7,200 | ? |
| Wages expense……………………… | 22,000 | ? |
| Total expenses………………………. ? | ? | 55,625 |
| Net Income……………………………... | ? | $69,375 |
Barry's Automotive Shop | |
| Statement of Retained Earnings | |
| For Year Ended December 31 | |
| Retained Earnings, January 1 | $8,525 |
| Plus: Net income | 69,375 |
| ? | $77,900 |
| Less: Dividends | (36,000) |
| Retained Earnings, December 31 | $41,900 |
| Barry's Automotive Shop Balance Sheet December 31 | |
| Assets | Liabilities |
| Cash | $ 12,500 ? | Accounts payable | $ 2,600 |
| Accounts receivable | 1,500 | ? | ? |
| Supplies | 500 | Equity | ? |
| Repair shop equipment | 27,000 | Common Stock | $30,000 |
| Service truck | 33,000 | Retained earnings | 41,900 |
| Total assets | $74,500 | Total liabilities and equity | $74,500 |
| ? | ? | ? | ? |
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