1. Given the following account information for XYZ Company's adjusted trial balance as of 12/31/21, prepare a 1.) multiple-step income statement for the year ended 12/31/2021; and a 2.) classified balance sheet in report form as of December 31, 2021.

Additional information:

1. Prepaid insurance represents a 2 year insurance policy with an effective date of 1/1/22.

2. Investments are available for sale securities expected to be held for longer than one

year, There are no unrealized gains or losses on available for sale securities.

3. Notes payable is a 6 month note issued on 12/01/21.

4. Bonds payable of $70,000 are due November 30, 2028

5. Total stockholders' equity: As of 12/31/20: Common stock Par value $2, 300,000 shares

authorized, 50,000 shares issued at an average issue price of $4.50. The balance in

stockholders' equity is retained earnings.

6. Weighted average common shares outstanding is 50,000. No additional shares were issued

in 2021.

1. Income statement

Gross profit=

Total operating expenses=

Operating income=

Total other revenue/(expense)=

Net Income=

Earnings per share=

2.) Balance sheet

Total current assets=

Total Long term investment section=

Total PP&E section=

Total intangibles section=

Total other assets section=

Total Assets=

Total Current Liabilities=

Total Long-term Liabilities=

Common Stock=

Paid in capital in excess of par (APIC)=

Retained earnings=

Cash A/R ADA Inventory Prepaid Insurance Investments Land Buildings Equipment AD-Bld AD-Equip Franchise Accounts Payable Interest Pay Salaries Pay Income tax payable Note Payable Bond Payable Total Stockholders' Equity Dividends Revenue 12/31/2021 DR CR 107,000 62,000 5,000 78,000 16,000 83,000 80,000 65,000 100,000 15,000 12,000 12,000 24,000 1,000 2,000 23,000 14,000 70,000 396,000 85,000 314,000 Buildings Equipment AD-Bld AD-Equip Franchise Accounts Payable Interest Pay Salaries Pay Income tax payable Note Payable Bond Payable Total Stockholders' Equity Dividends Revenue Rent Revenue COGS Selling expenses Administrative Exps Interest Expense Restructuring Costs Income Tax Exp Loss on Sale 65,000 100,000 15,000 12,000 12,000 24,000 1,000 2,000 23,000 14,000 70,000 396,000 85,000 314,000 38,000 140,000 26,000 M 16,000 1,000 15,000 23,000 5,000 914,000 914,000