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Office supplies 900 Office supplies expense 620 Preferred stock (250 shares, $20 par value) 5,000 Premium on bonds payable 1,750 Prepaid rent 1,800 Rent expense
Office supplies 900 Office supplies expense 620 Preferred stock (250 shares, $20 par value) 5,000 Premium on bonds payable 1,750 Prepaid rent 1,800 Rent expense 6,100 Retained earnings (January 2018) 21,050 Salaries expense 88,095 Sales 226,000 Sales returns and allowances 2,500 Sales taxes payable 3,200 Treasury stock (200 common shares at cost) 2,250 Utilities expense 4,120 Instructions a. Prepare an income statement for the year ended December 31, 2018, which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than cost of goods sold and income tax expense) in order, from the largest to the smallest dollar balance You may ignore earnings per share. b. Prepare a statement of retained earnings for the year ending December 31, 2018. C. Prepare a statement of financial position (balance sheet) as of December 31, 2018, following these guidelines: Include separate asset and liability categories for those items that are "current." Include and label amounts for total assets, total liabilities, total stockholders' equity, and total liabilities and stockholders' equity. Present deferred income taxes as a noncurrent liability. To the extent information is available that should be disclosed, include the parenthetical disclosure of that information
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