Boutique shoppe Ltd. began operations two years ago. Its adjusted account balances on December 31, 2019, are listed below:

Account	Debit	Credit
Cash	$11,300
Merchandise inventory	46,000
Store supplies	18,900
Notes receivable	8,500
Store equipment	167,600
Accumulated depreciation, store equipment		49,000
Mortgage payable		54,000
Accounts payable		30,500
Sales		450,000
Sales discounts	14,000
Sales returns and allowances	8,000
Cost of goods sold	126,400
Sales salaries expense	105,200
Rent expense, selling space	25,000
Office supplies expenses	1,800
Rent expense, office space	65,000
Advertising expense	42,600
John Hogan, capital		58,800
John Hogan, withdrawals	2,000
Totals	$642,300	$642,300

9

Required

1. Prepare a classified multi-step income statement for the year ended December 31, 2019. (10 marks).
2. Prepare a statement of changes in equity for the year ended December 31, 2019. (5 marks).
3. Prepare a classified balance sheet as on December 31, 2019 based on the information provided. (10 marks).