Penn Company has the following ledger accounts and adjusted balances as of December 31, 2019.All accounts have normal balances.Penn's income tax rate is 20%.Penn has 300,000 shares of $5 Common Stock authorized and 90,000 shares outstanding.

Accounts Payable..................................46,000

Accounts Receivable.............................. 324,000

Accumulated Depreciation-Building............90,000

Accumulated Depreciation-Equipment..........72,000

Administrative Expenses.........................70,000

Allowance for Doubtful Accounts...............36,000

Bonds Payable...................................... 300,000

Building............................................. 900,000

Cash.................................................45,200

Common Stock....................................500,000

Cost of Goods Sold...............................684,000

Dividends..........................................24,000

Equipment.......................................... 348,000

Income from Operations of Division X........72,000

(Division X is a component of Penn Company)

Interest Revenue................................... 48,000

Inventory.............................................504,000

Land (held for future use)......................... 360,000

Land (used for building).......................... 198,000

Loss from Sale of Division X...........................144,000

(Division X is a component of Penn Company)

Loss on Sale of Investments..................... .. 18,000

Mortgage Payable ................................. 450,000*

Paid-In Capital in Excess of Par..................248,000

Premium on Bonds Payable.......................12,000

Prepaid Insurance..................................18,000**

Retained Earnings, January 1, 2019............ 530,000

Sales Discounts..................................... 36,000

Sales Returns and Allowances.................... 60,000

Sales Revenue....................................1,842,000

Selling Expenses.................................. 236,000

Trademark..........................................54,000

Treasury Stock.....................................80,000

*$25,000 of the principal comes due in 2020.

**Two years insurance paid in advance.

Instructions:

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