Problem 3-5B (Algo) Prepare financial statements from an adjusted trial balance (LO3-5)

Lilac Designs provides consulting services related to home decoration. Lilac Designs provides customers with recommendations for a full range of home dcor, including window treatments, carpet and wood flooring, paint colors, furniture, and much more. Below is the year-end adjusted trial balance of Lilac Designs.

LILAC DESIGNS
Adjusted Trial Balance
December 31, 2024
Accounts	Debits	Credits
Cash	$ 4,700
Accounts Receivable	3,700
Supplies	1,700
Prepaid Rent	5,700
Buildings	107,000
Accumulated Depreciation		$ 20,700
Accounts Payable		2,700
Salaries Payable		3,700
Utilities Payable		1,100
Notes Payable (due in four years)		17,000
Common Stock		47,000
Retained Earnings		14,700
Service Revenues		115,800
Salaries Expense	41,700
Rent Expense	17,700
Depreciation Expense	6,700
Supplies Expense	7,700
Advertising Expense	12,700
Utilities Expense	11,700
Interest Expense	1,700
Totals	$ 222,700	$ 222,700

Required:

1. Prepare an income statement for the year ended December 31, 2024.
2. Prepare the statement of stockholders equity, note that during the year the company issued additional common stock of $11,000. This amount is included in the amount for Common Stock in the adjusted trial balance.
3. Prepare the classified balance sheet for the year ended December 31, 2024.