The following data are for Leone Lumber Company:

1. A total of $3,400 of the prepaid insurance has expired. 2. An inventory of supplies showed that $1,700 are still on hand. 3. Prepaid rent expired during the year is $50,600. 4. Depreciation expense on store equipment is $8,800. 5. Accrued sales salaries are $4,000. 6. Accrued office salaries are $3.000. 7. Merchandise inventory on hand is $350,000. Prepare the following:

a. A work sheet for the year ended December 31, 1999. Refer to the chart of accounts on the inside covers of the text for any other account numbers you need.

b. A classified income statement. The only selling expenses are sales salaries, advertising, supplies, and depreciation expense-equipment.

c. A statement of retained earnings.

d. A classified balance sheet.

e. The December 31, 1999, closing entries.

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LEONE LUMBER COMPANY Trial Balance December 31, 1999 Acct. No. Account Title 100 Cash Debits $ 70,640 Credits 103 Accounts Receivable 105 Merchandise Inventory 107 Supplies on Hand. 108 Prepaid Insurance. 112 Prepaid Rent 170 Equipment 171 Accumulated Depreciation-Equipment 159,520 285,200 5,360 4,800 57,600 88,000 $ 17,600 200 Accounts Payable. 300 Capital Stock. 102,800 200,000 310 Retained Earnings, 1/1/99 219,640 410 Sales. 1,122,360 412 Sales Returns and Allowances 5,160 418 Interest Revenue 1,000 500 Purchases. 500,840 502 Purchase Returns and Allowances. 4,040 503 Transportation-In 7,840 505 Advertising Expense 78,000 508 Salos Salaries Expense 138,400 509 Office Salaries Expense. 80,800 510 Officers' Salaries Expense. 160,000 511 Utilities Expense. 4,800 536 Legal and Accounting Expense. 540 Interest Expense 567 Miscellaneous Administrative Expense $1,667,440 10,000 600 9,880 $1,667,440