Prepare an income statement and a statement of changes to retained earnings for the year ended December 31, 20xx in good form. Prepare a classified balance sheet for Dec 31, 20xx. 10,000 Maniacs Company Trial Balance December 31, 20xx

Debits Credits

Cash $5 Accounts Receivable $75 Allowance for Bad Debts $8 Inventory $25 Prepaid Expenses $18 Supplies $2 Equipment $120 Building $350 Accumulated Depreciation $110 Land $200 Investments in Stock held Long-Term $55 Trademark & Logo $3 Accounts Payable $20 Salaries Payable $65 Notes Payable (Due in 10 years) $180 Common Stock $20 Paid-In Capital in Excess of Par $150 Retained Earnings $80 Dividends Declared $12 Sales $880 Cost of Goods Sold $235 Salaries Expense $165 Research & Development Expense $25 Marketing Expenses $55 Depreciation Expense $35 Administrative Expenses $13 Taxes Expense $40 Interest Expense $22 Loss for Hurricane Damage $95 Gain from sale of Investments $37 Totals $1,550 $1,550

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5

Thrillanova Co. has two employees. Cain worked 45 hours during the current payroll period. Cain earns $20 an hour and gets time and half for OT. Cain has year to date earnings of $112,700 before the current payroll period. Withhold $100 from Cains earnings for federal income taxes. Able is paid an annual salary of $104,000. Able worked 60 hours during the week but is not entitled to OT. Able has year to date earnings of $5,500 before the current payroll period. Withhold $300 from Ables earnings for federal income taxes.