Prepare Income Statement, Retained Earnings Statement, and Balance Sheet for 2020,

CHARLES CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2020 Debit Credit Cash $29,500 Accounts Receivable 52,700 Allowance for Doubtful Accounts $701 Supplies 2,000 Prepaid Insurance 1,680 Equipment 26,300 Accumulated Depreciation Equipment 6,310 Notes Payable 7,200 Common Stock 10,000 Retained Earnings 24,581 Service Revenue 107,741 Rent Expense 9,113 Salaries and Wages Expense 32,990 Utilities Expenses 1,640 Office Expense 610 $156,533 $156,533 1. Fees received in advance from clients $6,340, which were recorded as revenue. 2. Services performed for clients that were not recorded by December 31, $4,790. 3. Bad debt expense for the year is $1,371. 4. Insurance expired during the year $461. 5. Equipment is being depreciated at 10% per year. 6. Charles gave the bank a 90-day, 10% note for $7,200 on December 1, 2020. 7. Rent of the building is $701 per month. The rent for 2020 has been paid, as has that for January 2021, and recorded as Rent Expense. 8. Office salaries and wages earned but unpaid December 31, 2020, $2,428