Preparation of Financial Statements: Example 1: The following items were taken from the accounting records of Bowser Incorporated. The income statement account balances are for the year ending December 31, 2009. The balance sheet account balances are the balances at December 31, 2009 except for the retained earnings balance which is the balance at 1/1/2009: Instructions: Prepare an income statement, a statement of retained earnings, and a classified balance sheet for Bowser Incorporated for the year 2009. Example 2: Selected account information from Aphrodite Corporation for the year 2009 is presented below: Instructions: Prepare a multiple step income statement. Practice Problems: Problem 1 The following items were taken from the accounting records of Talcom, Incorporated. The income statement account balances are for the year ending December 31, 2009. The balance sheet account balances are the balances at December 31, 2009 except for the retained earnings balance which is the balance at 1/1/2009: Instructions: Prepare an income statement, statement of retained earnings, and a classified balance sheet for Talcom Incorporated for the year 2009. Problem 2 The following items were taken from the accounting records of Cadillac Ranch, Incorporated. The income statement account balances are for the year ending December 31, 2008. The balance sheet account balances are the balances at December 31, 2008 except for the retained earnings balance which is the balance at 1/1/2008: Instructions: Prepare a multiple step income statement