Presented below is information related to Farr Company. 

Cash $30,000 

Taxes payable 3,000 

Accumulated depreciation – building 15,000 

Salaries payable 900 

Supplies 1,860 

Buildings 80,400 

Common stock 60,000 

Accumulated depreciation – equipment 10,000 

Prepaid advertising 5,000 Bonds payable (due in 9 years) 78,000 

Notes payable (due in 6 months) 14,400 

Land 137,320 

Inventory 102,000 

Interest payable 600 

Equipment 40,000 

Retained earnings, December 31, 2010 119,280 

Sales 1,400,000 

Selling and administrative expenses 240,000 

Hurricane loss (pre-tax) on plant (extraordinary item) 290,000 

Cash dividends declared on common stock 33,600 

Cost of goods sold 780,000 

Gain resulting from computation error on depreciation charge in 2009 (pre-tax) 52,000 

Other revenue 120,000 

Other expenses 100,000 

Instructions: 

Prepare in good form a multiple-step income statement (including earnings per share information), a statement of retained earnings and a classified balance sheet for Farr Company for the year 2011. Assume a 30% tax rate and that 20,000 shares of common stock were outstanding during the year.