Problem 3 (20 points) Credit Debit 4,400 62,300 8,000 2,500 40,000 812,000 988,000 565,000 15,000 20,000 42,000 6,300 50,000 300,000 20,000 Cash Accounts receivable Inventory Prepaid insurance Land Equipment Buildings Accumulated depreciation Patent Copyright Accounts payable Unearned revenue Notes payable* Bonds payable Discount Common stock Additional paid in capital Treasury stock Retained earnings Sales revenue Sales discounts Cost of goods sold Wages expense Advertising expense Utilities expense Depreciation expense Amortization expense Interest expense Gain on sale of land Loss on sale of equipment 8,000 42,000 16,000 287,300 2,100,000 65,000 795,000 410,000 72,000 21,000 19,000 8,200 19,400 4,100 6,900 Total | 3,404,700 3,404,700 *Note payable, $20,000 is due within one year, with the remainder due beyond one year. Please prepare an income statement, a statement of retained earnings, and a classified balance sheet. Problem 3 (concluded) Balance Sheet