Here is the info I got from a worksheet for preparing statements.
101 Cash 18,800
112 Acct Receive 16,200
126 Supplies 2,300
130 Prepaid Insurance 4,400
151 Office equipment 44,000
152 Accumulated Depreciation office equip. 20,000
200 Notes Payable 20,000
201 Accounts Payable 8,000
212 Salaries Payable 2,600
230 Interest Payable 1,000
311 Common Stock 30,000
320 Retained earnings 6,000
332 Dividends 12,000
400 Service Revenue 77,800
610 Advertising Expense 12,000
631 Supplies expense 3,700
711 Depreciation expense 8,000
722 Insurance expense 4,000
726 Salaries expense 39,000
905 Interest expense 1,000
Totals $165, 400 165,4000

Some additional information: $10,000 of the notes payable become due in 2009. No additional issuance of common stock occurred during 2008.

For the income statement I got

Revenues
Service Revenues 77,800
Expenses
Salaries expense 39,000
Advertising expense 12,000
Supplies expense 3,700
Insurance expense 4,000
Interest expense 1,000
Depreciation expense 8,000
Total expense 67,700
10,100

I think this is wrong because when I do the retained earnings statement I get a negative balance. Of -1,900. Where did I go wrong? I think if I can make the corrections on the income statement the retained earnings statement and the balance sheet will be attainable for me to do.

DO NOT GIVE UP!

You are doing very well.

You have arrived at the correct result of
$10,100 Profit.

Next Calculate the NEW RETAINED EARNINGS.

1) Profit = 10,100
2) Add old retained = 6,000
3) Sub-total = 16,100
4) Less Dividend = 12,000
_______________________
5) New retained = 4,100
_____________________

All you have to do now is
FORMULATE A BALANCE SHEET

Please acknowledge receipt of understanding.

If capitol stock is not given how then do you get it

See above in the original question.:-

311 Common Stock 30,000

Thank you so much, I get it. I just overlooked the retained earnings, it was hiding from me! Thanks again.

Wages to employees of $18000 were paid during the month.$2000 of this was for time worked in the previous month. How do you enter this in a income statement?

I am trying to complete the Balance sheet for the same problem above and my totals are off.

When you have this problem, the way to find your error is:

1. Double check your calc for totals.
2. Be sure you have written the numbers right.
3. Look at your difference. If it's divisible by 9, you could have a transposition error. Divide the difference by 2, and see if there is a number in that amount that you put on the wrong side of things.
4. If none of these help, tell me your numbers and I'll see if I can give you more ideas.

On the same original problem, when creating the income statement for period ending December 31, 2008, what effect does the 10k of notes payable due in 2009 have? Do I create an adjusting entry to debit notes payable and credit cash by $10k?