Debit Company – Financial statements

1) The adjusted trial balance of Debit Company is shown below:

                                                   Debit Company

                                            Adjusted Trial Balance

                                                December 31, 2012

Cash                                                                 $6,500

Accounts receivable                                       8,000

Supplies                                                             1,000

Prepaid Rent (3 months)                              2,500

Equipment, net                                              42,000

Accounts payable                                                                         $4,000

Salary payable                                                                                 2,000

Unearned revenue (2 month advance)                                     2,000

Note payable — long term                                                         14,000

Common stock                                                                              10,000

Retained earnings                                                                        14,700

Dividends                                                         4,000

Service revenue                                                                             75,000

Salary expense                                              40,000

Rent expense                                                  10,000

Supplies expense                                            1,500

Depreciation expense                                    5,000

Utilities expense                                             1,200                               

Total                                                             $121,700               $121,700

Prepare Debit Company's income statement, statement of retained earnings and balance sheet for the year ended December 31, 2012. (10 points each, total 30 points)