COMPREHENSIVE PROBLEM Mountain Sports, Inc. 3 cial statements at December 31, 2018. Following are the correct adjusted account balances, Mountain Sports, Inc., is a retailer that has engaged you to assist in the preparation of its finan- (Hint: The "normal" balance is the same as the debit or credit side that increases the account.) in alphabetical order, as of that date. Each balance is the "normal" balance for that account. Accounts payable... Accounts receivable... Accumulated depreciation: office equipment... Additional paid-in capital (common stock). Bonds payable (due December 31, 2021).. Cash.... Common stock (1,800 shares, $10 par value).. Cost of goods sold. Deferred income taxes.. Depreciation expense: office equipment. $ 12.750 2,600 12,000 13,000 22,500 19,200 18,000 100,575 5,750 Dividends declared.. 2,750 Income tax expense. 5,000 Insurance expense. 8,190 Land...... 900 Merchandise inventory... 39,500 Notes payable (due December 31, 2019). 17,500 Office equipment... 2,500 Office supplies.. 41,000 900 Office supplies expense.... 520 Preferred stock (250 shares, $20 par value). 5,000 Premium on bonds payable..... 1,750 Prepaid rent..... 1,800 Rent expense.. 6,100 Sales taxes payable Retained earnings (January 2018).. Salaries expense.. Sales... Sales returns and allowances.. Treasury stock (200 common shares at cost).. 21,050 88,095 226,000 2,500 3,200 2,250 4,120 Utilities expense. Instructions a. Prepare an income statement for the year ended December 31, 2018, which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than cost of goods sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share. b. Prepare a statement of retained earnings for the year ending December 31, 2018. c. Prepare a statement of financial position (balance sheet) as of December 31, 2018, following these guidelines: . Include separate asset and liability categories for those items that are "current." Include and label amounts for total assets, total liabilities, total stockholders' equity, and total liabilities and stockholders' equity. Present deferred income taxes as a noncurrent liability. To the extent information is available that should be disclosed, include the parenthetical disclosure of that information