a) Prepare the March classified multiple-step income statement, the March statement of changes in equity, and the March 31, 2015 classified balance sheet. Hint: The classified multiple-step income statement begins with sales less cost of goods sold to arrive at gross profit. The functional categories of selling expenses and general and administrative expenses are included on the income statement.

Bentley Inc. Adjusted Trial Balance March 31, 2015 Debit Credit Cash 894,766 Accounts receivable 845,893 Allowance for doubtful accounts 20,130 Interest receivable 292.50 Notes receivable 78,056 Merchandise inventory. 2,147,966 Prepaid advertising. 16,125 Office furniture 8,400 Accumulated depreciation, office furniture 140 Accounts payable 519,350 Utilities payable 17,775 Income taxes payable. 203,600 Common shares 60,000 Retained earnings. 2,320,147 Cash dividends declared 17,600 Interest earned 592.50 Sales 2,560,000 Sales discounts 35,200 Cost of goods sold. 1,158,004 Depreciation expense, office furniture 140 Office salaries expense 26,000 Sales salaries expense. 70,000 Bank service charge expense 1,200 Rent expense, office space 3,480 Rent expense, selling space. 2,320 Advertising expense. 5,375 Bad debts expense 169,994 Utilities expense 17,775 Income taxes expense 203,600 Gain on sale of property, plant and equipment assets 452 Totals 5,702,186.50 5,702,186.50 Classified income statement: Bentley Inc. Income Statement For month ended March 31, 2015 X X X X X Operating expenses : Statement of changes in equity: Bentley Inc. Statement of Changes in Equity For month ended March 31, 2015 Common Retained Total Shares Earnings Equity X X X X X + + + + 1 TT TT Classified balance sheet: Bentley Inc. Balance Sheet March 31, 2015 X X X X X IEEEE f f f fl f ++