Campus Company Trial Balance, December 31, 2016

Account Title Debit Credit

Cash $197,000

Sales Revenue.. $8,100,000

Receivables.. 435,000

Inventory. 597,000

Investments. 729,000

Land. 260,000

Buildings. 1,040,000

Accumulated depreciation-building 200,000

Accumulated depreciation-equipment 60,000

Equipment 600,000

Franchises 160,000

Patents. 195,000

Payables 2,077,000

Cost of goods sold 4,800,000

Selling Expense.. 1,800,000

Administrative expense 900,000

Interest expense 151,000

Research and development expense. 100,000

Gain on sale of equipment.. 80,000

Common Stock, $5 par 1,000,000

Retained earnings 78,000

Treasury stocks.. 351,000

Paid-in capital in excess of par 720,000

$12,315,000 $12,315,000

Additional information

1. Receivables include:

Amount owed by customers $325,000

Allowance for uncollectible accounts from customers (20,000)

Prepaid advertising 10,000

Short-term loan due June 2017 120,000

Total receivables $435,000

2. Investments include the following:

229,000 investment that the company will sell in March 2017

500,000 long-term available-for sale investment

$729,000 Total investments

3. Payables consist of:

$ 200,000 note due June 30, 2017

1,800,000 bonds payable maturing 12/31/2030

70,000 due to suppliers for merchandise and services on account

7,000 received from a customer for merchandise to be provided in January 2017.

$2,077,000 Total payables

4. One million shares of $5 par value common stock are authorized of which 200,000 shares were issued. Treasury stocks consist of 40,000 shares of the companys common stock.

5. On December 28, 2016 the board of directors declared a cash dividend of $0.09 per share on its common stocks outstanding payable January 15, 2017. This transaction has not yet been recorded in the companys accounts.

6. The companys tax rate is 20%.

Required:

Use Microsoft Excel to prepare the following 2016 financial statements for Campus Company: a. Multiple-step income statement that includes earnings per share disclosure.

b. Statement of retained earnings

c. Classified balance sheet.