Prepare balance sheet and income statement

The following is a list of accounts for Merrimack Lumber at December 31, 2021. The balances shown are their "normal" balances: Cash $30,000 Building $500,000 Accrued Legal Expenses $37,000 Machinery $200,000 Common Stock $100,000 Rent Expense $85.000 Notes Payable held longer than one year $275,000 Interest Expense $30,000 Retained Earnings (at 1/1/2021) $545,000 Prepaid Insurance Expense $25,000 Salaries Expense $95,000 Revenue 550,000 Accounts Payable $163,000 Income Tax Payable $50,000 Unearned Revenue $55,000 Inventory $350,000 Salaries Payable $30,000 Accounts Receivable $145,000 Depreciation Expense $40,000 Prepaid Rent Expense $10,000 Land $250,000 Income Tax Expense $45,000 Required: 734 The following is a list of accounts for Merrimack Lumber at December 31, 2021. The balances shown are their "normal" balances: Cash $30,000 Building $500,000 Accrued Legal Expenses $37,000 Machinery $200,000 Common Stock $100,000 Rent Expense $85.000 Notes Payable held longer than one year $275,000 Interest Expense $30,000 Retained Earnings (at 1/1/2021) $545,000 Prepaid Insurance Expense $25,000 Salaries Expense $95,000 Revenue 550,000 Accounts Payable $163,000 Income Tax Payable $50,000 Unearned Revenue $55,000 Inventory $350,000 Salaries Payable $30,000 Accounts Receivable $145,000 Depreciation Expense $40,000 Prepaid Rent Expense $10,000 Land $250,000 Income Tax Expense $45,000 Required: 734