Based on the following trial balance for Sal's Beauty Shop,prepare an income statement,statement of retained earnings and a balance sheet.Sal made no additional investments in the company during the year.
$\begin{array}{c}
\text { Sal's Beauty Shop}\
\text { Trial Balance}\
\text { December 31}\\begin{array}{|l|r|r|}
\hline \text { Cash } & \$ 6,500 & \
\hline \text { Accounts receivable } & 475 & \
\hline \text { Beauty supplies } & 2,500 & \
\hline \text { Beauty shop equipment } & 17,000 &\
\hline\text { Accounts payable } & & \$ 745 \
\hline \text { Common stock } & & 10,000 \
\hline \text { Retained earnings } & & 11,155 \
\hline \text { Dividends } & 36,000 & \
\hline \text { Revenue earned } & & 72,000 \
\hline \text { Beauty supplies expense } & 3,425 & \
\hline \text { Rent expense } & 6,000 & \
\hline \text { Wages expense } & \underline{22,000} & \
\hline \text { Totals } & \$ 93,900 & \$ 93,900 \
\hline
\end{array}\end{array}$

Question

Based on the following trial balance for Sal's Beauty Shop,prepare an income statement,statement of retained earnings and a balance sheet.Sal made no additional investments in the company during the year.
 $\begin{array}{c}
\text { Sal's Beauty Shop}\
\text { Trial Balance}\
\text { December 31}\\begin{array}{|l|r|r|}
\hline \text { Cash } & \$ 6,500 & \
\hline \text { Accounts receivable } & 475 & \
\hline \text { Beauty supplies } & 2,500 & \
\hline \text { Beauty shop equipment } & 17,000 &\
\hline\text { Accounts payable } & & \$ 745 \
\hline \text { Common stock } & & 10,000 \
\hline \text { Retained earnings } & & 11,155 \
\hline \text { Dividends } & 36,000 & \
\hline \text { Revenue earned } & & 72,000 \
\hline \text { Beauty supplies expense } & 3,425 & \
\hline \text { Rent expense } & 6,000 & \
\hline \text { Wages expense } & \underline{22,000} & \
\hline \text { Totals } & \$ 93,900 & \$ 93,900 \
\hline
\end{array}\end{array}$

Quizplus · Accepted Answer

The Answer of Based on the following trial balance for Sal's Beauty Shop,prepare an income statement,statement of retained earnings and a balance sheet.Sal made no additional investments in the company during the year.
 $\begin{array}{c}
\text { Sal's Beauty Shop}\
\text { Trial Balance}\
\text { December 31}\\begin{array}{|l|r|r|}
\hline \text { Cash } & \$ 6,500 & \
\hline \text { Accounts receivable } & 475 & \
\hline \text { Beauty supplies } & 2,500 & \
\hline \text { Beauty shop equipment } & 17,000 &\
\hline\text { Accounts payable } & & \$ 745 \
\hline \text { Common stock } & & 10,000 \
\hline \text { Retained earnings } & & 11,155 \
\hline \text { Dividends } & 36,000 & \
\hline \text { Revenue earned } & & 72,000 \
\hline \text { Beauty supplies expense } & 3,425 & \
\hline \text { Rent expense } & 6,000 & \
\hline \text { Wages expense } & \underline{22,000} & \
\hline \text { Totals } & \$ 93,900 & \$ 93,900 \
\hline
\end{array}\end{array}$

Based on the Following Trial Balance for Sal's Beauty Shop,prepare