Chapter $3$ Test $1$

The Retained Earnings account balance was $$125,200$ on December $31$ of the prior year. Required:

$1$a$.$ Prepare the income statement for the current year ended December $31.$

$1$b$.$ Prepare the statement of retained earnings for the current year ended December $31.$

$1$c$.$ Prepare the classified balance sheet at December $31$ of the current year.

$2.$ Prepare the necessary closing entries at December $31$ of the current year.