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

Orange Designs provides consulting services related to home decoration. Orange 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 Orange Designs.

ORANGE DESIGNS
Adjusted Trial Balance
December 31, 2021
Accounts	Debits				Credits
Cash	$	4,600
Accounts Receivable		3,600
Supplies		1,600
Prepaid Rent		5,600
Buildings		106,000
Accumulated Depreciation					$	20,600
Accounts Payable						2,600
Salaries Payable						3,600
Utilities Payable						1,200
Notes Payable (due in four years)						16,000
Common Stock						46,000
Retained Earnings						14,600
Service Revenues						116,000
Salaries Expense		41,600
Rent Expense		17,600
Depreciation Expense		6,600
Supplies Expense		7,600
Advertising Expense		12,600
Utilities Expense		11,600
Interest Expense		1,600
Totals	$	220,600			$	220,600

Required:

1. Prepare an income statement for the year ended December 31, 2021.
2. Prepare the statement of stockholders equity, note that during the year the company issued additional common stock of $12,000. 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, 2021.