Question - Tar Heel Corporation provides the following information at the end of 2012.
Salaries payable to workers at the end of the year $ 3,100
Advertising expense for the year 9,600
Building that has been purchased 70,600
Supplies at the end of the year 4,300
Retained earnings 36,400
Utility expense for the year 5,000
Note payable to the bank 18,900
Service revenue earned during the year 65,000
Salary expense for the year 26,300
Accounts payable to suppliers 7,000
Dividends paid to shareholders during the year (?)
Common stock that has been issued, including $5,000 that was issued this year 27,000
Cash remaining 4,400
Interest expense for the year 2,500
Accounts receivable from customers 13,100
Required: Prepare the following for Tar Heel Corporation on December 31, 2012. The balance of retained earnings at the beginning of the year equals $23,800.
(a) Income Statement.