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Debit Doctors, Inc., provides accounting advice over the Internet. Its accountant prepares adjusting entries on a monthly basis and closing entries on an annual basis at December 31. An adjusted trial balance dated December 31, 2011, follows

Required:

1. Prepare an Income Statement.
2. Statement of Retained Earnings for the year ended December 31, 2011.
3. Also prepare the companys Balance Sheet dated December 31, 2011.

Dr. Debit Doctors, Inc. Adjusted Trial Balance December 31, 2011 Details Cr. Cash $22,380 Client fee Receivables 71,250 Prepaid studio rent 2,500 Supplies 6,000 Equipment 96,000 Accumulated dep: equipment 52,000 Notes payable 24,000 Accounts Payables 6,420 Interest payable 4,80 Income taxes payable 5,000 Unearned client fee 8,000 Capital stock 50,000 Retained earnings 20,000 Client Revenue Earned 181076 Salaries expense 17.250 Supply expense 4,000 Interest expense 480 Rent expense 11,250 Utilities expense 3,300 Depreciation expense: equipment 8,800 Income taxes expense 5,000 Total $248,210 Dr. Debit Doctors, Inc. Adjusted Trial Balance December 31, 2011 Details Cr. Cash $22,380 Client fee Receivables 71,250 Prepaid studio rent 2,500 Supplies 6,000 Equipment 96,000 Accumulated dep: equipment 52,000 Notes payable 24,000 Accounts Payables 6,420 Interest payable 4,80 Income taxes payable 5,000 Unearned client fee 8,000 Capital stock 50,000 Retained earnings 20,000 Client Revenue Earned 181076 Salaries expense 17.250 Supply expense 4,000 Interest expense 480 Rent expense 11,250 Utilities expense 3,300 Depreciation expense: equipment 8,800 Income taxes expense 5,000 Total $248,210

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