Lawrence Company, Inc. December 31, 2017 Adjusted Trial balance Debit Credit 45,000 Cash Accounts Receivable 44.900 2,000 Allowance for Doubtful Accounts 80,000 Short Term Note Receivable Interest Receivable 2,400 Supplies 5,000 Prepaid Insurance 40,000 Inventory 16,500 Vehicle 16,000 Equipment 41,000 Accumulated Depreciation 18,000 Accounts Payable 15,000 Unearned Revenue 18,000 Wages Payable 7.000 Long-Term Notes Payable 65,000 Common Stock 106,000 Retained Earnings (1/1/2017) 2,500 Dividends 2,000 Sales 539,500 Sales Returns & Allowances 7,600 Sales Discounts 3,000 Cost of Goods Sold 51,000 Delivery Expense 2,000 Depreciation Expense 19,000 Bad Debt Expense 2,000 Rent Expense 98,000 Insurance Expense 40,000 Wages Expense 195,000 Supplies Expense 15,500 Interest Revenue 2,400 Loss on Disposal 7,000 Interest Expense 6,500 Income Tax Expense 36,000 Total 775,400 775,400 Part 2a: Prepare a Multi-step Income Statement (Be sure to include all the necessary headings, totals and subtotals as outlined in Chapter 5. You may not need to use all the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the income Statement, use the right column for subtotals and totals.) Inc. Income Statement Year Ended Dec 31, 2017 ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L Part 2b: Prepare a statement of Retained Earnings. Inc. Statement of Retained Earnings Year Ended Dec. 31, 2017 ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L 9 Part 2c: Prepare a Classified Balance Sheet (Be sure to include all the necessary subtotals and totals as outlined in Chapter 2. You may not need to use all of the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Balance Sheet, use the right column for subtotals and totals.) Inc. Balance Sheet As of Dec. 31, 2017 ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L 10