Create a Multi-Step Income Statement, Statement of Retained Earnings, Classified Balance Sheet and Statement of Cash Flows. These financial statements are being prepared for the fiscal month ending May 31st. Build the financial statements within the given blanks. The month of May's worksheet is to be utilized while creating the financial statements. Additional information folows:

-For the Statement of Retained Earnings, assume a beginning balance in the Retained Earnings account of $366,000. Also assume that $345,500 of dividends were declared.

-For the Classified Balance Sheet, assume that the company only has common stock and that the value of common stock at par value equals $30,200. Further assume that the value of paid-in-capital excess of par on the common stock has a value of $1,560,000.

-For the Statement of Cash Flow assume that the company purchased equipment with $200,000 cash. The company sold land and received $429,000 in cash. Also assume the following ending balances from the last financial period: Cash: $345,091; A/R: $525,000; Inventory: $836,000; Office Supplies: $5,000; A/P: $675,800. Additionally, the company paid cash dividends during the period of $345,500. Create the Statement of Cash Flow using the Indirect Method.

Worksheet for May

	Unadjusted				Adjusted		Income		Bal. Sheet
	Trial Balance		Adjustments		Trial Balance		Statement		Stmt. Own. Equity
Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	250,000				250,000				250,000
Accounts Receivable	280,000				280,000				280,000
Allowance for Doubtful Accounts		12,500		2,415		14,915				14,915
Merchandise Inventory	745,000			5,000	740,000				740,000
Office Supplies	2,300			735	1,565				1,565
Prepaid Insurance	7,000			3,500	3,500				3,500
Land	1,628,803				1,628,803				1,628,803
Building	1,000,000				1,000,000				1,000,000
Accumulated Depreciation - Building		700,000				700,000				700,000
Equipment & Furniture - Warehouse	7,900				7,900				7,900
Accumulated Depreciation - Equip & Furn. - Warehouse		5,643		775		6,418				6,418
Equipment & Furniture - Office	7,421				7,421				7,421
Accumulated Depreciation - Equip & Furn. - Office		2,000		825		2,825				2,825
Accounts Payable		800,000				800,000				800,000
Wages Payable		0				0				0
Interest Payable		2,500				2,500				2,500
Dividends Payable		0				0				0
Unearned Rent		7,400	2,143			5,257				5,257
Notes Payable		200,000				200,000				200,000
Bonds Payable		90,000				90,000				90,000
Mortgage (Warehouse) Payable		197,000				197,000				197,000
Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding		30,200				30,200				30,200
Paid In Capital - Excess of Par		1,560,000				1,560,000				1,560,000
Retained Earnings		20,500				20,500		289,574		310,074
Treasury Stock		0			0				0
Sales		1,067,500				1,067,500	1,067,500
Cost of Goods Sold	636,700		5,000		641,700			641,700
Wage Expense (hourly workers)	10,000				10,000			10,000
Salaries Expense (Exempt Staff)	32,100				32,100			32,100
Marketing Expense	64,000				64,000			64,000
Travel and Entertainment Expense	1,250				1,250			1,250
Bad Debt Expense	0		2,415		2,415			2,415
Property Tax Expense	1,455				1,455			1,455
Office Maintenance & Repair Expense	0				0			0
Legal Expenses	6,340				6,340			6,340
Insurance Expense	0		3,500		3,500			3,500
Utilities Expense	2,000				2,000			2,000
Office Supplies Expense	0		735		735			735
Telecommunications Expense	754				754			754
Depreciation Expense - Equip & Furniture - Warehouse	0		775		775			775
Depreciation Expense - Equip & Furniture - Office	0		825		825			825
Rent Income		0		2,143		2,143	2,143
Interest Expense	12,220				12,220			12,220
Total	4,695,243	4,695,243	15,393	15,393	4,699,258	4,699,258	1,069,643	1,069,643	3,919,189	3,919,189
								0		0
Net Income (Loss)							1,069,643	1,069,643	3,919,189	3,919,189

Income Statement
For the Month Ended May 31, 2016
Sales

Statement of Retained Earnings
For the Month Ended May 31, 2016

Balance Sheet
May 31, 2016

Statement of Cash Flow
For the Month Ended May 31, 2016