Problem 1 The following accounting information at the end of year 20XX is available for Rona Company: RONA COMPANY List of Account Balances December 31, 20XX Accounts Balance Accounts Payable $128,000 Accounts Receivable 150,000 Accumulated Depreciation - Building 80,000 Accumulated Depreciation - Equipment 120,000 Administrative Expenses 350,000 Bonds Payable (due in 3 years) 130,000 Building 425,000 Cash 105,000 Preferred Stocks 50,000 Common Stocks 300,000 Cost of Goods Sold Equipment 350,000 400,000 Interest Expenses 20,000 Inventories 128,000 Marketable Securities 85,000 Mortgage Payable (due in 2 to 10 years) 210,000 Prepaid Insurance 5,000 Retained Earnings 140,000 Sales 965,000 Selling Expenses 105,000 Assume that all end-of-the-year adjusting entries, except for taxes and net income distribution, have been made. Assume also that the effective tax rate is 30% and the company will pay 40% of its net income to stockholders as dividends, after paying all taxes. Required: A. Prepare a trial balance. B. Prepare an income statement. C. Prepare a classified balance sheet. [5 Points] [5 Points] [5 Points]