balance of the erchandising company. The Balances from the trial company as of December 31, 2017 is given below. Hudson Co. Balances from the Trial Balance December 31.2011 Accounts Payable Customer Deposits Received Accumulated Depreciation, Office Equipment Prepaid Rent Long-term Notes Payable Merchandise Inventory Advertising Expense Sales Returns&Allowances Office Supplies Expense Interest Payable $13,000 1.400 12,000 1,800 9,500 2.800 6,000 3,400 1,800 Insurance Expense Sales Office Equipment 300,000 62,000 Rent Expense Withdrawals Cost of Goods Sold Capital 6,000 3,500 149,000 Utilities Expense Sales Discounts 2,000 1,000 2,000 12,000 Freight-out Expense Accounts Receivable Salaries Expense Freight-in Expense 54,000 4,000 Depreciation Expense, Office Equipment Interest Expense 1,000 15,000 Required: a) Prepare the income statement of the company for the year ended December 31,2017 b) Prepare the classified balance sheet of the company as of December 31, 2017. 2