Part III. Financial Statement Preparation (40 points) Doggy Day Care Inc. uses the following adjusted trial balance to prepare financial statements as of December 31, 2020: Account Title DR CR Accounts Receivable 7,500 Building 76,200 Cash 39,800 Cost of Goods Sold 4,500 Depreciation Expense 7,700 Income Tax Expense 700 Interest Expense 8,400 Long-term Stock Investment 7,000 Office Supplies 1,500 Prepaid Insurance 1,600 Salaries Expense 35,000 Utilities Expense 500 Accounts Payable 9,300 Accumulated Depreciation-Building 11,700 Common Stock 73,000 Interest Payable ($3,000 due in 11 months, 5,400 due in 14 months) 8,400 Retained Earnings (balance as of 12/31/2019) 11,900 Salaries Payable 1,900 Sales Revenue 58,900 Utilities Payable 5,300 Additional Details: Doggy Day Care had the following number of common shares outstanding during the fiscal year: o Jan 1, 2020- Jul 31, 2020 - 3,000 o Aug 1, 2020 -Dec 31, 2020 - 3,600 Doggy Day Care has no preferred shares outstanding. All payables will be paid within one year unless explicitly stated otherwise. Hints: For the multi-step income statement, I have provided the amount that should be reported for income tax in the trial balance (see Income Tax Expense above) End of Year RE = Beginning of Year RE + Net Income - Dividends