6 Lester and Forrest Scruggs have presented you with the following information for Scruggs, Inc. For 2021 they would like for you to 7 complete a(n) 1 adjusted Trial Balance (prepare this on a separate sheet tab). 2 multi step income statement (prepare this on a separate sheet tab). 8 9 10 3 statement of retained earnings (prepare this on a separate sheet tab) 11 4 classified balance sheet (prepare this on a separate sheet tab) 12 13 determine the gross profit margin, operating margin and profit margin as percentages (put these on the income statement next 5 to their respective amounts) 14 Lester Scruggs indicated that 1 all accounts have their normal balance 2 the tax rate is 21% (you will have to make an adjustment for this before preparing the statements) 15 16 17 3 they discontinued the baseball bat division during the year. 18 19 Debt Credit Classification 20 Accounts payable 21 Accounts receivable 22 Accrued expenses 23 Accumulated depreciation - equipment 24 Advertising expense 25 Allowance for doubtful accounts 26 Available for sale securities (bonds)-current 27 Bad debt expense-sales 35,000 320,000 4,000 12,000 5,000 8,500 3,500 1,500 28 Bonds payable (5,000 due in 2022, remainder due in 2023) 30,000 29 Cash 70,000 30 Common stock (500,000 shares authorized, 100,000 shares outstanding, $3 par) 500,000 31 Cost of goods sold 750,000 32 Current portion of long term debt 10,000 33 Deposits made on utilities 1,250 34 Depreciation expense-store equipment (sales) 1,200 35 Discount on Bonds Payable -Long Term 4,500