Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet Assume that you are the president of Nuclear Company. At the end of the first year of operations (December 31, 2009), the following financial data for the company are available:
1. Prepare an income statement for the year ended December 31, 2009. TIP: Begin by classifying each account as asset, liability, stockholders’ equity, revenue, or expense. Each account is reported on only one financial statement.
2. Prepare a statement of retained earnings for the year ended December 31, 2009. TIP: Because this is the first year of operations, the beginning balance in Retained Earnings will be zero.
3. Prepare a balance sheet at December 31, 2009. TIP: The balance sheet includes the ending balance from the statement of retained earnings.