These items are taken from the financial statements of Batavia Company:

\section*{Instructions}
Prepare an income statement, a retained earnings statement, and a classified balance sheet for December 31, 1998 .

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Cash Accounts receivable $ 8,200 7,500 Prepaid insurance 1,800 Equipment 28,000 Accumulated depreciation 8,600 Accounts payable 12,000 Salaries payable 3,000 Common stock 20,000. Retained earnings (beginning) 14,000 Dividends 7,200 Service revenue 42,000 Repair expense 3,200 Depreciation expense 2,800 Insurance expense 1,200 Salaries expense 36,000 Utilities expense 3,700