Question 4 From the Given date, find the values by Accounting Equation and prepare Income Statement, Retain Earnings and Balance Sheet at the End the Year Larson's Accounting Company has the following account balances: Cash, $5,000; Accounts Receivable, $2,000; Prepaid Rent $1,500; Supplies, $850; Equipment, $6,000; Trucks, $15,000; Accounts Payable, $2,500; Common Stock, $20,000; Retained Earnings $7,850. Business transactions during December are presented as follows: 1. Company received cash from clients for services, $4,500 2. Larson paid to creditors $500, 3. Paid office rent for the month of December, $750, 4. Company billed client for accounting services on account, $5,200 5. Supplies were purchased on account, $650, 6. Company received cash from clients billed previously, $6,000 7. Larson received an invoice for office equipment repair services from Office Extra for December (the invoice will be paid next month), $850, 8. Larson paid monthly salaries, $2,700, 9. Utilities expense were paid, $280, 10. Miscellaneous expense were paid, $350, 11. Dividends were paid, $550