Direction: Prepare an Income statement, retained earnings statements, and balance sheet.

Income Tax Expense and Income Tax Payable have not yet been calculated . Assume the company is in a 21% tax bracket and that the 21% rate applies to all items of income or loss, including any "weird items ." Merchandise inventory at the beginning of the year was $ (you will need to analyze the Income Summary account ). For earnings per share calculations , assume that 600 shares of common stock were sold on April 1, 2019 , but no other stock was sold or purchased during the year.

The alphabetical ADJUSTED trial balance for your company on December 31, 2019, is listed below (adjusting entries for the end of the year have already been made): Debits Credits $4,070 $8,100 12,000 1,510 440 600 4,000 500 15,000 3,950 480 44,000 4,000 1,200 86,000 5,400 300 2,900 700 Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Advertising Expense Allowance for Doubtful Accounts Amortization Expense Available for Sale Securities Bad Debts Expense Bonds Payable (Due in 2024) Cash Cash Dividend Declared Common Stock, $10 par, 30,000 shares authorized Depreciation Expense Discount on Bonds Payable Equipment Franchise Freight In Gain on Sale of Assets Income Summary (from Adjusting Merchandise) Income Tax Expense Income Tax Payable Insurance Expense Interest Expense Interest Income Interest Payable Loss From Discontinued Operations Merchandise Inventory, ending Paid in Capital in Excess of Par Prepaid Insurance Purchases Rent Expense Retained Earnings Sales Sales Returns Trading Securities Utilities Expense Wages Expenses Wages Payable TOTAL $$$$ $$$$ 1,200 1,600 450 240 3,700 13,060 19,200 800 25,700 3,600 28,800 51,200 1,000 2,090 3,200 7,730 720 $179,720 $179,720