Preparation of Financial Statements:

ABC company has just completed its first year of business in 2019.

Following is a list (in no systematic order) of the items appearing in its summary accounts as of December 31, 2019.

Cash 234,000 Accounts payable 130,000

PP&E 221,000 Paid-in capital 500,000

Sales revenue 250,650 Prepaid rent 65,000

Unearned Revenues 20,000 Cost of goods sold 150,000

Other expenses 150 Accounts receivable 250,000

Inventories 180,000 Operating expenses 37,000

Income tax expense 8,500 Long-term notes payable 200,000

Cash dividends paid 5,000 Wages payable 50,000

1. Prepare a multiple-step income statement for the year 2019.

2. Prepare a statement of retained earnings for the year ending December 31, 2019.

3. Prepare a classified balance sheet on December 31, 2019.