1. For cash, use A = L+E
2. 6% cumulative preferred stock, $50 par value, 4,000 shares issued and outstanding, preferred dividend is cumulative. No preferred stock was issued during 2019.
3. Preferred dividend has been paid until 2017. No preferred dividend has been paid in 2018.
4. All the common stock has $1 par value.
5. 100,000 shares issued and zero treasury stock on 1/1/2019.
6. 50,000 shares are issued on 7/1/2019 for $500,000.
7. 3,000 shares are repurchased on 10/1/2019, the company paid $45,000 and it uses cost method for treasury method accounting.
8. Assume the total effective tax rate on all items in income statement (otherwise noted) is 15%.

1. Prepare multiple step income statement for the year 2019.
2. Prepare classified balance sheet as of 12/31/2019.

Debit Credit 200,800 70,000 10,500 5,000 2,400 200,000 7,000 457,234 25,000 515,000 153,000 21,000 2,000,000 15,000 Account 1 Selling & General Admin expenses 2 Accumulated depreciation-building & equipment 3 Tax Payable 4 Interest expense 5 Unearned Sales revenue 6 Finished goods Inventory 7 Allowance for doubtful accounts 8 Goodwill Impairment of goodwill 10 Debt Investments (trading securities) 11 Sales returns and allowances 12 Unrealized holding losses on available-for-sale securities 13 Bonds payable 14 Unrealized holding gains on trading securities 15 Cash 16 Sales revenue 17 Copyrights 18 Interest revenue 19 Cost of goods sold 20 Land 21 Available-for-sale securities (Non-current) 22 Accounts payable 23 Building and Equipment 24 Prepaid Other Operating Expense 25 Dividend declared 26 Accounts receivable 27 Gain on discontinued operations, after tax 28 Premium on bonds payable 29 Unrealized gain on cash flow hedge 30 Work in process 31 Supplies 2,324,000 30,000 3,000 624,700 100,000 155,000 202,000 340,000 20,000 25,000 150,000 15,000 2,000 12,000 10,000 15,000 Debit Credit 17,000 35,000 0 Account 32 Dividend payable 33 Accumulated other comprehensive income, beginning balance 34 Treasury, beginning balance 35 Preferred stock, par value $50 per share, beginning balance 36 Common stock, par value $1 per share, beginning balance 37 Paid in capital in excess of par - Common stock, beginning balance 38 Retained earnings, beginning balance 200,000 100,000 900,000 21,000 Debit Credit 200,800 70,000 10,500 5,000 2,400 200,000 7,000 457,234 25,000 515,000 153,000 21,000 2,000,000 15,000 Account 1 Selling & General Admin expenses 2 Accumulated depreciation-building & equipment 3 Tax Payable 4 Interest expense 5 Unearned Sales revenue 6 Finished goods Inventory 7 Allowance for doubtful accounts 8 Goodwill Impairment of goodwill 10 Debt Investments (trading securities) 11 Sales returns and allowances 12 Unrealized holding losses on available-for-sale securities 13 Bonds payable 14 Unrealized holding gains on trading securities 15 Cash 16 Sales revenue 17 Copyrights 18 Interest revenue 19 Cost of goods sold 20 Land 21 Available-for-sale securities (Non-current) 22 Accounts payable 23 Building and Equipment 24 Prepaid Other Operating Expense 25 Dividend declared 26 Accounts receivable 27 Gain on discontinued operations, after tax 28 Premium on bonds payable 29 Unrealized gain on cash flow hedge 30 Work in process 31 Supplies 2,324,000 30,000 3,000 624,700 100,000 155,000 202,000 340,000 20,000 25,000 150,000 15,000 2,000 12,000 10,000 15,000 Debit Credit 17,000 35,000 0 Account 32 Dividend payable 33 Accumulated other comprehensive income, beginning balance 34 Treasury, beginning balance 35 Preferred stock, par value $50 per share, beginning balance 36 Common stock, par value $1 per share, beginning balance 37 Paid in capital in excess of par - Common stock, beginning balance 38 Retained earnings, beginning balance 200,000 100,000 900,000 21,000