Name: Date: Resolve the exercises Exercise 1 (50 points) The following items were taken from the financial statements of Rivera Company. (All dollars are in thousands.) Mortgage payable $ 2,340 Accumulated depreciation 3,560 Prepaid expenses 980 Accounts payable 1,555 Property, plant, and equipment 11,500 Notes payable due after 2017 1,200 Long-term investments 1,300 Owner's capital 14,026 Short-term investments 3,690 Accounts receivable 1,696 Notes payable due in 2017 1,000 Inventories 1,765 Cash 2,750 Instructions Prepare a classified balance sheet in good form as of December 31, 2016. Exercise 2 (50 points) The adjusted trial balance of Bennett Company contained the following information: Debit Credit Sales Revenue $530,000 Sales Returns and Allowances $ 12,000 Sales Discounts 7,000 Cost of Goods Sold 318,000 Freight-Out 2,000 Advertising Expense 15,000 Interest Expense 13,000 Salaries and Wages Expense 90,000 Utilities Expense 23,000 Depreciation Expense 12,000 Interest Revenue 37,000 Instructions 1. Use the above information to prepare a multiple-step income statement for the year ended December 31, 2016. 2. Prepare a single-step income statement for the year ended December 31, 2016