The account balances taken from the general ledger and state- P.O. 7 ment of retained earnings for Raymor Sales, Inc., are as follows:

a. Preferred 9 percent stock: 3,000 shares authorized, 2,400 shares issued

b. Common stock: 30,000 shares authorized. 20,400 shares issued

Instructions Prepare a classified balance sheet dated December 31

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Accounts Payable $294,780 Accounts Receivable 379,080 Accumulated Depreciation, Building 68,400 Accumulated Depreciation, Equipment 74,610 Allowance for Doubtful Accounts 13,860 Building 270,000 Cash 17,460 Common Stock, $15 stated value 306,000 Dividends Payable 14,400 Equipment 139,800 Income Tax Payable 43,800 Land Merchandise Inventory 36,000 713,610