Solution-Prepare an income statement a retained earnings

These items are taken from the financial statements of Tilley, Inc.

Prepaid insurance	$ 1,400
Equipment	31,000
Salaries and wages expense	36,000
Utilities expense	2,100
Accumulated depreciation-equipment	8,600
Accounts payable	8,200
Cash	5,100
Accounts receivable	$ 4,900
Salaries and wages payable	2,000
Common stock	6,000
Depreciation expense	4,300
Retained earnings (beginning)	14,000
Dividends	2,600
Service revenue	53,000
Maintenance and repairs expense	2,600
Insurance expense	1,800

Instructions

Prepare an income statement, a retained earnings statement, and a classified balance sheet as of December 31, 2012.

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