Eric Shehan is a student working on an internship at Mahon Ltd. On December 31, 2020, the company hadits year end. Eric's boss brought him the following information: Accounts Payable Cash Notes Payable Inventory Common Shares Sales Revenue Retained Earnings (at January 1, 2020) Cost of Goods Sold Utilities Expense Interest Revenue $219,000 116,000 248,000 312,000 350,000 3,405,000 1,149,000 2,044,000 86,000 10,000 426,000 6,000 Wages Expense Notes Receivable Rent Expense Dividends Declared Supplies Insurance Expense Equipment Accumulated Depreciation, Equipment Miscellaneous Expense Unearned Revenue Advertising Expense $364,000 198,000 32,000 178,000 11,000 16,000 1,695,000 161,000 32,000 28,000 54,000 Accounts Receivable Interest Expense These account amounts are correct, but Eric's boss advised him that the information did not reflect the following information: 1. 2. 3. Accrued interest of $5,000 on the notes receivable. Employees earned $79,000 in bonuses based on achieving sales targets. These are payable on January 10, 2021. Accrued interest on the note payable amounting to $5,000 is due in January 2021. As of December 31, 2020, the supplies still on hand had a cost of $7,000. The insurance expense includes $3,000 in premiums related to coverage for 2021. Depreciation for 2020 is $169,000 on the equipment. The company's board declared additional dividends of $250,000, which are payable to shareholders on January 15, 2021. 5. 6. 7. Mahon Ltd. Adjusted Trial Balance December 31, 2020 Debits Credits $ $ I Prepare a statement of income for the year ended December 31, 2020. Mahon Ltd. Statement of Income $ $ Calculate the amount of retained earnings as at December 31, 2020. Ending retained earnings, Dec. 31, 2020 $ Prepare a classified statement of financial position as at December 31, 2020. (Note: The note receivable and note payable are due in 2021.) (List Current Assets in order of liquidity.) Mahon Ltd. Statement of Financial Position Assets $ h Liabilities and Shareholders' Equity $ $ $