Angel Valdez is an owner and manager of Angel V$\text{'}$s Inc., which began operations a few years prior. On December $31,$ AV's shows the following selected accounts and amounts for the fiscal year ended December $31.$

Account Debit Credit Account Debit Credit

Cash $ $25,407$ Common stock $ $80,500$

Accounts receivable $23,994$ Paid$-$in capital in excess of par$-$C$.$S$.484,840$

Allowance for doubtful accounts $810$ Retained earnings $229,946$

Interest receivable $100$ Cash Dividends $10,007$

Inventory $47,995$ Sales $2,298,002$

Supplies $10,414$ Sales discounts $13,274$

Prepaid insurance $3,274$ Sales returns & allowances $62,894$

Prepaid rent $5,388$ Interest revenue $2,203$

Notes receivable $38,990$ Gain on sale of plant asset $4,222$

Investment in stock $25,998$ Cost of goods sold $1,266,438$

Land $144,986$ Depreciation expense $44,720$

Buildings $1,395,003$ Amortization expense $4,170$

Equipment $215,800$ Salaries expense $570,001$

Accumulated Depreciation $-$ Buildings $85,444$ Insurance expense $1,457$

Accumulated Depreciation $-$ Equipment $45,056$ Rent expense $12,961$

Patents $41,990$ Supplies expense $114,406$

Accounts payable $32,287$ Utilities expense $3,877$

Salaries payable $21,297$ Interest expense $38,493$

Interest payable $7,424$ Income tax expense $22,155$

Income tax payable $1,739$ Bad debts expense $765$

Unearned revenue $8,463$ Freight$-$out $25,208$

Notes payable $57,802$ Loss on sale of plant asset $3,257$

Mortgage payable $582,587$

Bonds payable $230,800$ Totals $ $4,173,422$ $ $4,173,422$

Additional information:

The Note receivable is due to the company in $3$ months.

The Notes payable is not due for $2$ years.

The Prepaid insurance is for a policy that expires October $1($good for $9$ more months$).$

The Prepaid rent is for the next $6$ months.

Bonds payable mature in $15$ years.

The Mortgage payable is due over a $20-$year period and $$15,000$ of the principal is due next year.

The company plans to hold the Investments in stock for at least the next $18$ months.

Required:

Prepare a January $1-$ December $31$ multiple step income statement for the business.

Prepare a January $1-$ December $31$ statement of retained earnings.

Prepare a December $31$ balance sheet.

Prepare the closing entries in the order outlined in the book and in class.