These items are taken from the financial statements of Melinda Corporation for 1998:

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

Transcribed Image Text:

Retained earnings (beginning of year) $16,000 Utilities expense 1,700 Equipment 26,000 Accounts payable 13,300 Cash Salaries payable 13,600 3,000 Common stock 20,000 Dividends 12,000 Service revenue 54,000 Prepaid insurance 3,500 Repair expense 1,800 Depreciation expense 2,600 Accounts receivable 13,500 Insurance expense 2,200 Salaries expense 35,000 Accumulated depreciation 5,600