Prepare the financial statements for ABC Corporation: 1. Multistep income statement. 2. Statement of retained earnings. 3. A classified balance sheet.

ABC Corporation Trial Balance December 31, 2010 Cash.................................................................. Accounts Receivable......................................... Merchandise Inventory...................................... Land................................................................... Building.............................................................. Equipment......................................................... Allowance for Doubtful Accounts....................... Accumulated DepreciationBuilding................ Accumulated DepreciationEquipment............ Accounts Payable.............................................. Taxes Payable................................................... Dividends Payable............................................. Unearned Rent Revenue................................... Common Stock ($10 par)................................... Paidin Capital in Excess of ParCS................ Preferred Stock ($20 par).................................. Paidin Capital in Excess of ParPS................ Retained Earnings............................................. Treasury Stock.................................................. Cash Dividends................................................ Sales.................................................................. Rent Revenue.................................................... Sales.................................................................. Bad Debts Expense........................................... Interest Expense................................................ Cost of Goods Sold........................................... Depreciation ExpenseBuildings..................... Depreciation ExpenseEquipment................... Other Operating Expenses................................ Salaries Expense............................................... Total................................................................... Debit $53,300 51,000 22,700 65,000 95,000 40,000 0000,000 14,700 6,750 4,650 5,000 400,000 3,000 3,600 139,000 65,000 $868,700 Credit $ 5,100 33,000 18,000 19,300 2,500 6,750 2,000 90,000 19,000 20,000 2,000 75,050 670,000 6,000 $868,700