2. a) Using the following information for Campbell Enterprises, prepare an annual:

Multiple-step income statement

Retained earnings statement

Classified balance sheet (7 points)

b) Using the above information, compute Campbells gross profit rate. Please show the details of

your computation: (1 point)

Gross profit rate ____________________________________________

Campbell Enterprises, Inc.

Adjusted Trial Balance

December 31, 2019

Debit Credit

Cash 4,000

Accounts Receivable 15,000

Inventory 30,000

Prepaid Insurance 4,000

Supplies 3,000

Long-term Investment in Stock 6,000

Land 20,000

Buildings 120,000

Accumulated Depreciation

Buildings 20,000

Patents 10,000

Accounts Payable 10,000

Unearned Revenue 2,000

Bonds Payable (due in 2023) 20,000

Common Stock 80,000

Retained Earnings 44,000

Dividends 30,000

Sales Revenue 305,000

Interest Revenue 5,000

Sales Discounts 6,000

Sales Returns & Allowances 8,000

Cost of Goods Sold 188,000

Salaries and Wages Expense 21,000

Depreciation Expense 10,000

Utilities Expense 5,000

Insurance Expense 3,000

Supplies Expense 2,000

Interest Expense 1,000

486,000 486,000