Part 2a: Prepare a Multi-step Income Statement

(Be sure to include all the necessary headings, totals and subtotals as outlined in Chapter 5. You may not need to use all the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Income Statement, use the right column for subtotals and totals.)

__________, Inc.

Income Statement

Year Ended Dec. 31, 2017

Part 2b: Prepare a Statement of Retained Earnings.

__________, Inc.

Statement of Retained Earnings

Year Ended Dec. 31, 2017

Part 2c: Prepare a Classified Balance Sheet (Be sure to include all the necessary subtotals and totals as outlined in Chapter 2. You may not need to use all of the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Balance Sheet, use the right column for subtotals and totals.)

__________, Inc.

Balance Sheet

As of Dec. 31, 2017

Lawrence Company, Inc. December 31, 2017 Adjusted Trial balance Debit Credit 45,000 44,900 Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Interest Receivable Supplies Prepaid Insurance Invento Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Pavable Common Stock Retained Earnings (1/1/2017 Dividends Sales Sales Returns & Allowances Sales Discounts Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Revenue Loss on Disposal Interest Expense Income Tax Expense Total 2,000 80,000 2,400 5,000 40,000 16,500 16,000 41,000 18,000 15,000 18,000 7,000 65,000 106,000 2,500 2,000 539,500 7,600 3,000 51,000 2,000 19,000 2,000 98,000 40,000 195,000 15,500 2,400 7,000 6,500 36,000 775,400 775.400