These items are taken from the financial statements of Martin Corporation for 2017.

Retained earnings (beginning of year) $31,000

Utilities expense 2,000

Equipment 66,000

Accounts payable 18,300

Cash 10,100

Salaries and wages payable 3,000

Common stock 12,000

Dividends 12,000

Service revenue 68,000

Prepaid insurance 3,500

Maintenance and repairs expense 1,800

Depreciation expense 3,600

Accounts receivable 11,700

Insurance expense 2,200

Salaries and wages expense 37,000

Accumulated depreciation-equipment 17,600

Required:

1. Prepare an income statement, a retained earnings statement, and a classified balance sheet as of December 31, 2017.

Service revenue 68,000

Utilities expense 2,000

Maintenance and repairs expense 1,800

Depreciation expense 3,600

Insurance expense 2,200

Salaries and wages expense 37,000

Total expenses (46,600)

Net Income 21,400

Retained earnings (beginning) $31,000

Net Income 21,400

Dividends (12,000)

Ending Retained Earnings 40,400

Balance Sheet

Assets

current

Cash 10,100

Accounts receivable 11,700

Prepaid insurance 3,500

total current 25,300

Non-Current

Equipment (net) 48,400

Total Assets: 73,700

Liabilities

Accounts payable 18,300

Salaries and wages payable 3,000

Total Liabilities 21,300

Equity

Common stock 12,000

Retained Earings 40,400

Total Equity 52,400

Total Liabilities + Equity 73,700

Explanation:

First, we do the income statmeent which is revenues less expenses accounts

Then, we do the retained earnings.

To the beginning balance we add up the net income and subtract the dividends.

Then, end with the blaance sheet:

first assets in order of liquity

then liabilities and last equity using the retained earnings balance we calcualted.