Little Lads and Ladies Ltd. sells childrens clothing. At the end of December 2014 (its third year of operations), it had the following account balances, which are listed in random order.

Cash	$3,000	Accounts payable	4,000
Wages payable	500	Electricity expense	200
Supplies expense	4,000	Dividends	1,200
Equipment	23,000	Depreciation expense	500
Wages expense	15,000	Common shares	20,000
Prepaid rent	300	Telephone expense	200
Cost of goods sold	32,000	Interest expense	300
Sales	55,750	Accumulated depreciation	1,500
Accounts receivable	10,000	Retained earnings Jan 1,2014	17,600
Rent expense	3,600	Inventory	8,000
Bank loan (due in 2016)	3,800	Other expenses	300
Advertising expense	750	Supplies	1,000
		Interest payable	200

Required:

a. Prepare the Single-step income statement for the year ended on Dec 31, 2014.

b. Determine the amount of Retained earnings at the end of 2014 (Please show your work).

c. Prepare a Classified Balance sheet as of December 31, 2014.