ner's beginning capital balance 107,500 Group A Problem 10-1A Objective: To prepare a classified income statement from account balances The following are account balances after adjustments for Cindy Logan Clothing Store for the year ended December 31, 20XX Account Advertising Expense Depreciation Expense-Office Equipment Depreciation Expense-Store Equipment Freight In Insurance Expense Merchandise Inventory, December 31 Merchandise Inventory, January 1 Office Salaries Expense Balance 6,100 13,000 16,000 5,200 7,000 37,600 42,400 28,300 Financial Statements and Closing Entries for a Merchandising Business ments and Closing Entries for a Merchandising Business487 Chapter 10 10 REVIEW, PRACTICE, AND APPLY Account Office Supplies Expense Purchases Purchases Returns and Allowances Purchases Discounts Rent Expense Sales Sales Returns and Allowances Sales Discounts Sales Salaries Expense Store Supplies Expense Utilities Expense Balance $ 4,750 219,550 13,465 6,300 26,200 395,140 15,505 7,400 23,000 5,300 5,800 Directions: Prepare a classified income statement. Problem 10-2A nd analyze a classified balance she Check Figure