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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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