Stark company has the following adjusted accounts with normal balances at its December 31 year-end.

\table[[Notes payable,$14,000 Accumulated depreciation-Buildings,],[Prepaid insurance,2,800 Accounts receivable,],[Interest expense,560 Utilities expense,],[Accounts payable,3,000 Interest payable,],[Wages payable,700 Unearned revenue,],[Cash,16,000 Supplies expense,],[Wages expense,7,800 Buildings,],[Insurance expense,2,100 Dividends,],[Common stock,13,000 Depreciation expense-Buildings,],[Services revenue,35,000 Supplies,],[,,Retained earnings]]

Exercise 3-17 (Algo) Preparing Financial Statements LO P5

Use the adjusted accounts for Stark Company to prepare the (1) income statement an (2) statement of retained earnings for the year ended December 31 and (3) balance sheet at December 31. The Retained Earnings account balance was $29,800 on December 31 of the prior year.

Complete this question by entering your answers in the tabs below.

\table[[\table[[Income],[Statement]],\table[[Statement of],[Retained],[Earnings]],Balance Sheet]]

Prepare the income statement for the year ended December 31.