The following items are available from the records of Honky Tonk Records Inc. at the end of

Question:

The following items are available from the records of Honky Tonk Records Inc. at the end of the year:
Accounts payable ............ $27,000
Accounts receivable ........... 21,000
Advertising expense ........... 6,000
Buildings ................. 76,000
Contributed capital ........... 30,000
Cash .................. 6,320
Notes payable ............. 70,000
Salaries expense ............. 9,500
Service revenue .............. 16,820
Equipment ................ 25,000
Required
Prepare Honky Tonk's income statement and statement of retained earnings for the year and its at the end of the year.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...