Response to the following problem:
Klein Interiors has the following account balances at the end of the year. Use only the appropriate accounts to prepare an income statement and a balance sheet.
Note: All account balances are normal.
Accounts Balances
Equipment 78,000
Accounts Payable 12,000
Common Stock 20,000
Service Revenue 62,000
Cash 8,000
Retained Earnings ?
Salaries Expense 38,000
Notes Payable 25,000