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The following items are taken from the financial statements of One Headlight Company for 2020:
Accounts payable $10,500
Accounts receivable 14,000
Accumulated depreciation-equipment 10,000
Unearned Rent Revenue 5,000
Cash 23,000
Common stock 25,000
Depreciation expense 5,000
Dividends 20,000
Equipment 30,000
Utilities expense 9,000
Rent Expense 12,000
Service Revenue 75,000
Retained earnings, January 1 33,500
Salaries and wages expense 62,000
Rent Revenue 16,000
Instructions
Problem (a) Prepare an income statement and a retained earnings statement for the year ended December 31, 2020.
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