Part 2 Instructions: Page 2 After all of the transactions for the year ended December 31, 20X1 have been posted (including the transactions recorded in part 1), the data below is given for the December 31 balances, unless otherwise stated. Prepare a multistep income statement, a statement of stockholders' equity, and a classified balance sheet in good form for the year ended December 31, 20X1. Use the Student Input Form (Excel File) to complete the Financials. Debit Credit Cash Accounts receivable Allowance for doubtful accounts 390,000 259,000 13,000 Trading Investments 65,000 Valuation allowance for Trading Investments 6,500 Merchandise inventory at lower of cost (FIFO) or market 26,000 Prepaid expenses 3,900 Interest receivable 2,600 Investment in Masco Company stock 19,500 Store buildings and equipment 396,500 Accumulated depreciation-store buildings and equipment 195,000 Accounts payable 125,570 Income tax payable 2,000 Bonds payable, 10%, due in 10 years 130,000 Premium on bonds payable Retained earnings, January 1, 20X1 6,500 293,865 Cash dividends, December 31, 20X1 balance 14,300 Stock Dividends, December 31, 20X1 balance 0 Common stock, $10 par (100,000 shares authorized; 14300 shares outstanding), January 1, 20X1 143,000 Paid-in capital in excess of par-common stock, January 1, 20X1 Paid-in capital from sale of treasury stock, January 1, 20X1 14,300 0 Treasury stock, January 1, 20X1 Sales Gain from sale of investment Dividend revenue 0 910,000 1,300 Unrealized gain(loss) on Trading Investments 12,480 1,040 Interest revenue 3,510 Income from Masco Co. investments 26,000 Cost of goods sold 520,000 Advertising expense $13,000 Depreciation expense-store buildings and equipment 9,100 Miscellaneous selling expenses 6,500 Sales commissions 26,000 Office rent expense 65,000 Office salaries expense 78,000 Miscellaneous administrative expenses 1,300 Interest expense 6,500 Income tax expense 52,000