Ortman Company has the following ledger accounts and adjusted balances as of December 31, 2021. All accounts have normal balances. Ortmans income tax rate is 20%. Ortman has 500,000 shares of Common Stock authorized, 200,000 shares of Common Stock issued, and 190,000 shares of Common Stock outstanding.

Accounts Payable. 105,300

Accounts Receivable 729,000

Accumulated Depreciation-Building 212,500

Accumulated Depreciation-Equipment. 152,000

Administrative Expenses. 142,000

Allowance for Doubtful Accounts 81,000

Bonds Payable.. 720,000

Building.. 2,025,000

Cash. 105,300

Common Stock1,080,000

Cost of Goods Sold.1,559,000

Discount on Bonds Payable. 18,000

Dividends. 54,000

Equipment. 783,000

Income from Operations of Division X... 162,000

(Division X is a component of Carr Company)

Interest Revenue... 108,000

Inventory1,134,000

Land (held for future use).....810,000

Land (used for building).. 445,500

Loss from Sale of Division X...........................324,000

(Division X is a component of Carr Company)

Loss on Sale of Investments.. 40,500

Mortgage Payable ....1,012,500*

Paid-In Capital in Excess of Par...712,800

Prepaid Rent. 40,500**

Retained Earnings, January 1, 2020..1,012,500

Sales Discounts. 81,000

Sales Returns and Allowances.135,000

Sales Revenue...4,144,500

Selling Expenses.... 526,500

Trademark121,500

Treasury Stock.108,000

*$80,000 of the principal comes due in 2022.

**Three years rent on offsite document storage paid in advance.

Instructions:

Use this information to prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet.