Instructions: Use this information to prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet. Show work.

Horton Company has the following ledger accounts and adjusted balances as of December 31, 2023. All accounts have normal balances. Horton's income tax rate is 20%. Horton has 300,000 shares of $10 par Common Stock authorized and 85,000 shares of Common Stock outstanding.

Accounts Payable.................................. 87,750 Accounts Receivable.............................. 607,100 Accumulated Depreciation-Building............ 168,750 Accumulated Depreciation-Equipment.......... 140,000 Administrative Expenses......................... 150,000 Allowance for Doubtful Accounts............... 67,500 Bonds Payable...................................... 600,000 Building............................................1,687,500 Cash................................................. 87,750 Common Stock.................................... 900,000 Cost of Goods Sold...............................1,282,500 Dividends.......................................... 75,000 Equipment.......................................... 652,500 Income from Operations of Division Y........ 135,000 (Division Y is a component of Horton Company) Interest Revenue................................... 90,000 Inventory.............................................945,000 Land (held for future use)......................... 675,000 Land (used for building).......................... 371,250 Loss from Sale of Division Y.................... 270,000 (Division Y is a component of Horton Company) Loss on Sale of Land............................... 33,750 Mortgage Payable ................................. 813,550* Paid-In Capital in Excess of Par................. 594,000 Premium on Bonds Payable..................... 15,000 Prepaid Insurance.................................. 33,750** Retained Earnings, January 1, 2023............ 843,750 Sales Discounts..................................... 43,500 Sales Returns and Allowances...................112,500 Sales Revenue....................................3,453,750 Selling Expenses.................................. 416,750 Trademark..........................................101,250 Treasury Stock..................................... 90,000 *$50,000 of the principal comes due in 2024. **Two years insurance paid in advance.