Reference no: EM132480852

Point 1: Appearing below is the adjusted trial balance for ABC Corporation, a new business, as of the end of the accounting period. (Remember, the trial balance is nothing more than the listing of all accounts in the General Ledger.) All accounts have been adjusted as necessary, however, closing entries have not been entered. Note that since the closing process hasn't been completed, the Retained Earnings Account that appears below is as of the beginning of the year, and since it's a new company, the Retained Earnings balance at the beginning of the period is $0.

Question 1: Prepare in good order an Income Statement (covering the period), a Statement of Retained Earnings (end of period), and a Balance Sheet (end-of-period).

Adjusted Trial balance for ABC Corporation

Account                                  Debit                          Credit

Cash                                $3,000

Accts. Receivable               $5,000

Supplies                           $1,200

Accts. Payable                                                 $2,000

Capital Stock                                                    $5,200

Retained Earnings (Beginning)                                     $ -

Dividends                                $1,000

Revenue                                                             $7,000

Advertising Expense                    $1,500

Rent Expense                            $2,500

Totals                                   $14,200                     $14,200