Prepare the following financial statements:

- Multi-Step Income Statement

- Classified Balance Sheet

- Statement of Cash Flows (compute difference between beginning balance and ending balance for Balance Sheet accounts)

Beginning Balances:

Cash- Dr. $38,635

A/R- Dr. $5,390

Allowance For Doubtful Accounts- Dr. $196

Merchandise Inventory- Dr. $6482

Prepaid Insurance-

Office Supplies-

Truck- Dr. $12,500

Accumulated Depreciation- Cr. $12,000

Notes Payable-

Accounts Payable-

Dividend Payable-

Interest Payable-

Common Stock- Cr. $40,000

Additional Paid In Capital- Cr. $4,700

Retained Earnings- Cr. $6,503

Dividends-

Treasury Stock-

Sales-

Sales Discounts-

Sales Returns-

Gain/(Loss) on Sale-

Cost of Goods Sold-

Rent Expense-

Bank Charge Expense-

Office Supply Expense-

Insurance Expense-

Bad Debt Expense-

Depreciation Expense-

Interest Expense-

Income Tax Expense-

*Note: the accounts that are blank have no beginning balances.*

Adjusted Trial Balance Credits Debits 16.546 5.390 162 14.628 375 100 15.000 Account Name Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Prepaid Insurance Office Supplies Truck - 1 Asset Accumulated Depreciation Notes Payable Accounts Payable Dividends Payable Interest Payable Common Stock Additional Paid In Capital Retained Earnings Dividends Treasury Stock Sales REVENUE Sales Discounts Sales Sales Returns ales Gain/(Loss) on Sale Cost of Goods Sold - Expense Rent Expense Bank Charge Expense 7 Office Supply Expense Insurance Expense Bad Debt Expense Depreciation Expense Interest Expense Income Tax Expense Totals 250 11.000 5.928 0 92 75.000 8.200 6.503 10.000 37.500 6.285 200 500 3.731 7.350 1 155 6 2005 375 2 358 3 250 4 92 L.548 (13.920 113.920