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Accounting problem - Income statement, Retained earnings, balance sheet The Draco Company has collected balances from various accounts after preparing adjusting journal entries and posting
Accounting problem - Income statement, Retained earnings, balance sheet
The Draco Company has collected balances from various accounts after preparing adjusting journal entries and posting to the ledger for the past month. The following are the adjusted account balances from the ledger as of December 31, 2020:
AFS Securities at Market $ 12,000 | Unearned Revenue $ 3,000 |
Accounts Receivable $ 37,000 | Equipment $ 80,000 |
Sales $105,000 | Salaries Expense $ 8,000 |
Cost of Goods Sold $ 40,000 | Accounts Payable $ 12,000 |
Capital Stock $ 51,000 | Dividends $ 5,000 |
Accum. Depreciation-Equip $ 15,000 | Notes Payable (due in 3 years) $ 30,000 |
Land $ 30,000 | Retained Earnings, 1/1/2020 $ 45,000 |
Inventory $ 20,000 | Taxes Payable $ 16,000 |
Cash $ 30,000 | Depreciation Expense $ 10,000 |
Bad Debt Expense $ 5,000 | Allowance for bad debts $ 5,000 |
Sales Returns $ 3,000 | Insurance expense $ 4,000 |
Net unrealized gain on AFS $ 2,000 |
REQUIRED:
Prepare an Income Statement, Statement of Retained Earnings and Balance Sheet in GOOD FORM and in the correct order for the calendar year 2020. Complete the headings (DATE) on the financial statements.
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