Goldsmith Inc. sells childrens clothing. At the end of December 2014 (its first year of operations), it had the following account balances:

Cash	3,500
Wages payable	500
Display counters and other store fixtures	5,000
Wages expense	15,000
Prepaid rent	150
Cost of goods sold expense	33,000
Sales revenue	59,750
Accounts receivable	2,500
Rent expense	3,600
Bank loan (due in two years)	1,800
Income tax expense	800
Accounts payable	2,000
Electricity expense	300
Dividends declared	1,200
Depreciation expense	500
Common shares	9,000
Interest expense	100
Inventory	7,000
Miscellaneous expense	400
Retained earnings	?

Required:

1. Prepare the Income Statement for Goldsmith Inc. for the year ended December 31, 2014.

2. Calculate the Retained Earnings, by following the process outlined below:

Balance of Retained Earnings at the beginning of the year $ 0*

Add: Net income for the year $___________

Less: Dividends declared during the year $___________

Balance of Retained Earnings at the end of the year $___________

*The beginning balance is zero because this was the companys first year of operations.

3. Prepare the Classified Balance Sheet / Classified Statement of Financial Position for Goldsmith Inc. as at December 31, 2014.