Exercise 2: Parkland Department Store is located near the Lyndale Shopping Mall. At the end of the company's fiscal year on December 31, 2015, the following accounts appeared in its adjusted trial balance.

Accounts Payable

$73,300

Accounts Receivable

45,500

Accumulated DepreciationBuildings

52,500

Accumulated DepreciationEquipment

42,600

Buildings

190,000

Cash

28,000

Common Stock

140,000

Cost of Goods Sold

412,000

Depreciation Expense

23,400

Dividends

15,000

Equipment

100,000

Gain on Disposal of Plant Assets

4,300

Income Tax Expense

15,000

Insurance Expense

8,400

Interest Expense

7,000

Interest Payable

2,000

Inventory

43,000

Mortgage Payable

62,500

Prepaid Insurance

2,400

Maintenance and Repairs Expense

$6,200

Retained Earnings

19,200

Salaries and Wages Expense

111,000

Sales Revenue

626,000

Salaries and Wages Payable

3,500

Sales Returns and Allowances

7,000

Sales Discount

1,000

Utilities Expense

11,000

Additional data: $20,000 of the mortgage payable is due for payment next year.

Instructions

Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet.