1. Presented below are selected account balances of Sandra Company at the end of its fiscal year on December 31, 2017: Rental revenue- Interest expense Beginning retained earnings Dividend revenue- Discontinued operations loss Flood damage loss $ 8,000 Dividends paid 9,500 Selling expenses 6,400-Sales revenue 1,000 -Cost of goods sold 3,000 Administrative expenses 4,500 Depreciation overstatement 6,000 50,000 280,000 110,000 30,000 2,000 Additional facts are as follows: i) The discontinued operations loss was after tax. ii) $2,000 (net of tax) stated above arose from an internal audit discovery of an error in the computation of depreciation expense in a prior year. iii) Applicable income tax rate for all items is 34%. Instruction From the above figures and additional facts, prepare a multiple-step income statement and a retained earnings statement for the fiscal/financial year ended on December 31, 2017 2. Given the following account information for Equity Corporation, prepare a balance sheet in report form for the company as of December 31, 2017. All accounts have normal balances: D Equipment C Interest Payable C Retained Earnings 31/12/2017 260,000 Land 175,000 62,000 45,000 C Notes Payable (due in 8 months) 30,000 420,000 270,000 C Accumulated Depreciation Equip. 23,400 18,000 350,000 9,000 8,500 33,500 10,500 65,000 D Accounts Receivable C Bonds Common Stock C. Preferred Stock y Prepaid Advertising o Buildings Supplies C Income Taxes Payable C Salaries and Wages Payable C Accumulated Depr. - Bld. p Cash