P-4. The following information is the adjusted trial balance of Coyote Consulting Inc. for the
year ended on 12/31/2021.
Cash
Debit
Credit
$25,000
Accounts receivable
11,000
Inventory
30,000
Prepaid rent
2,000
Equipment
23,000
Accumulated depreciation-equipment
4,000
Accounts payable
2,000
Unearned service revenue
3,000
Common stock
50,000
Retained earnings
16,000
Dividend
9,000
Sales revenue
110,000
Rent revenue
10,000
Interest revenue
2,000
Costs of goods sold
60,000
Salaries and wages expense
25,000
Rent expense
7,000
Travel expense
5,000
Total
$197,000
$197,000
Instructions: Prepare Coyote's
1. The income statement for the year ended on 12/31/2021,
2. The statement of retained earnings for the year ended on 12/31/2021, and
3. The balance sheet as of 12/31/2021.