Answer
We will first calculate the Income statement, Secondly, we will calculate Retained Earning Statement, and finally the Balance sheet.
The Image of the statements has been attached.
Work Step by Step
The following formula must hold true under any circumstance .
Reason : There are numbers that are off on either side of the given equation ,as a result there is are issue that has occurred somewhere along the way with calculations rendered for the financial statements
Formula:
Assets=Liabilities + Stockholder’s Equity -( 1)
So to solve the problem, the best way will be to go in the following order and step as shown below to get the desired result :
Firstly prepare Income Statement:
(The Income statement has been attached (i.e. Figure 1)
After Preparing the Income Statement, we will prepare the Retained earnings statement.
(The Retained earnings statement has been attached (i.e. Figure 2)
As we able to see the from the retained earnings statement once the dividends are paid out we left with approximately $6800.00 of retained earning
Lastly we going to prepare the balance sheet :
