Practice Problem - Financial Statements GARRETT, INC. Trial Balance For the Year Ended December 31, 2018 25,000 390,600 185.000 9,000,000 240.000 550,000 285,000 120,000 820,000 195,600 Utilities Payable Cash Estimated Returns Inventory Cost of Goods Sold Accumulated Depreciation, Office Furniture Prepaid Insurance Office Supplies Depreciation Expense, Office Furniture Advertising Expense Customer Refunds Payable Supplies Expense Rent Expense - Selling Space Salaries Expense Store Equipment Merchandise Inventory Utilities Expense Office Equipment Common Stock Depreciation Expense, Office Equipment Accounts Payable Accumulated Depreciation, Store Equipment Store Salaries Expense Accounts Receivable Sales Dividends Accumulated Depreciation, Office Equipment Salaries Payable Rent Expense - Office Space Office Furniture Notes Payable (Due in 2 years) Insurance Expense Retained Earnings, January 1, 2018 Depreciation Expense, Store Equipment 100,000 1,040,000 65,000 3,000,000 2,000,000 25,000 500,000 3,500,000 100,000 945.000 600,000 30,000 210,000 13,400,000 130,000 200.000 95.000 400,000 1,200,000 950.000 200,000 500.000 300,000 20,650,600 20,650,600 Use the above Trial Balance to prepare the following statements: 1) A Corrected Trial Balance 2) Multiple Step Income Statement 3) Retained Earnings Statement 4) Classifed Balance Sheet Check Figures Cost of Goods Sold Gross Profit Total Operating Expenses Net Income Retained Earnings, December 31 Current Assets Total Assets Current Liabilities Current Liabilities & Equity 9,000,000 4,400,000 3,200,000 1,200,000 1,570,000 3,620,600 7,280.600 1,260,600 7,280.600