The following adjusted trial balance information (with accounts in alphabetical order) for Willis Tour Co. Inc. as at December 31, 2020, was made available after its second year of operations:

Required

The dividends declared by Willis in the amount of $4,500 during the year ended December 31, 2020, were debited directly to retained earnings. Prepare an income statement (in multi-step format), and a classified balance sheet for Willis Tour Co. Inc. using the information provided. Include the appropriate presentation for earnings per share.

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Account Debit Credit $ 2,500 Accounts Payable. Accumulated Depreciation, Office Equipment.. 8,000 Cash . $ 17,500 Common Shares, 20,000 authorized; 10,000 issued and outstanding. 12,500 Dividends Payable. 4,500 Gain on Expropriation of Land and Building. 25,000 Income Tax Expense. 12,000 Income Tax Payable. 2,000 Loss on Sale of Office Equipment 13,500 Notes Payable (due in 18 months). Office Equipment. 8,500 56,000 Operating Expenses. 195,500 Preferred Shares, $0.25 non-cumulative; 5,000 shares authorized; 2,000 shares issued and outstanding. 10,000 Prepaid Rent. Retained Earnings. 22,500 14,500 Ticket Sales 229,500 $317,000 $317,000 Totals