Part II - Mid-Term Exam Project The following accounts were taken from the records of Best Company on the year end (December 31, 2019) after adjusting entries being recorded and posted; all accounts have normal balances: Account payables $ 5,200 Account receivables 6,400 Cost of goods sold 8,300 Capital stock 18,700 Cash 5,400 Sales Revenue 24,800 Land 15,000 Salaries expense 3,000 Insurance expense 1,300 Salaries payable 1,000 Interest expense 980 Rent expense 1.000 Utilities expense 720 Income Tax Expense 1,000 Income Tax Payable 400 Investment (long-term) in ZYX, Inc shares 5,700 Depreciation Expense-Equipment 2,400 Sales Discounts 1,000 Accumulated Depreciation-Equipment 3,600 Inventory 8.000 Bonds Payable (Due in ten years) 16,500 Retained Earnings (January 1, 2019) 2.500 Dividends Equipment 12,000 Additional information: Total assets (end of the year) ? Total assets (beginning of the year) 47,100 70% of operating expenses are Selling expenses and 30% of the operating expenses are General and administrative expenses. Number of share outstanding during the year is 5,100. No new shares were issued during the year. The stock was selling at $10 per share at the year end. No additional entries are required. REQUIREMENT: (Show your detailed work) (a) Prepare Classified Balance Sheet, Multiple-Step Income Statement and Statement of Retained Earnings of Best Company using the proper format and all the required accounting conventions. (b) Prepare the closing entries for Best Company. Use Financial Statements Preparation Conventions for all financial statements: Have titles with three lines including Name of the company, name of the statement, and time or time period in this order. The above statement is called classified Balance Sheet, but still has Balance Sheet in the title. Columns do not mean debits and credits (just used to make the presentation clear). First amount in each column must have a $ sign. Not every amount can have a $ sign. Single line is used for addition or subtraction - subtotal, amount below single line must have a $ sign