Alderman Wholesalers, Inc., has just completed its fourth year of business in 20X1. A set of financial statements was prepared by the principal stockholder's eldest child, a college student who is beginning the third week of an accounting course. Assume that the statements in which these items appear are current and complete, except for the following matters not taken into consideration by the student: a. Salaries of $6,000 have been earned by employees for the last half of December 20X1. Payment by the company will be made on the next payday, January 2, 20x2. b. Interest at 6% per annum on the Note Receivable has accrued for 2 months and is expected to be collected by the company when the Note is due on January 31, 20X2. c. Part of the building owned by the company was rented to a tenant on November 1, 20x1, for 6 months, payable in advance. This rent was collected in cash and is represented by the item labeled Unearned Rent Revenue d. Depreciation on the building for 20X1 is $5,700. e. Cash dividends of $62,000 were declared in December 20X1, payable in January 20X2. f. Income tax at 40% applies to 20X1, all of which is to be paid in the early part of 20X2. Requirement 1. Prepare the corrected multiple-step income statement for the year ended December 31, 20X1 Begin by completing the multiple-step income statement through operating income, then finish the statement with the computation of net income (loss). Alderman Wholesalers, Inc. Income Statement For the Year Ended December 31, 20X1 Accounts payable Operating expenses. Interest expense Advertising expense Operating income Other revenue and expense Total other revenue Net income (loss) Requirement 2. Prepare the corrected statement of retained earnings for the year ended December 31, 20X1. (Leave any unused cells blank.) Alderman Wholesalers, Inc. Statement of Retained Earnings For the Year Ended December 31, 20X1 Total Retained earnings, December 31, 20X1 Requirement 3. Prepare the corrected classified balance sheet at December 31, 20X1. Begin by preparing the assets section, then complete the balance sheet by preparing the liabilities and stockholders' equity section. Alderman Wholesalers, Inc. Balance Sheet December 31, 20X1 Assets Liabilities and Stockholders' Equity Current assets: Current liabilities: Total current assets Total current liabilities Long-term assets: Stockholders' equity Total stockholders' equity Total assets Total liabilities and stockholders' equity