Problem 3: Below is an alphabetical listing of account balances for ABC, Inc. at December 31. Prepare a multi-step Income statement, a statement of retained earnings, and a classified balance sheet. On the income statement, just have a category for operating expenses (do not have separate categories for selling expenses and administrative expenses). Accounts Receivable Accumulated Depreciation Equipment Advertising Expense Allowance for Doubtful Accounts Bad Debt Expense Cash Common Stock Cost of Goods Sold Depreciation & Amortization Expense Dividends Equipment Insurance Expense $32,000 Interest Expense 47,000 Interest Payable 6,000 Inventory 2,100 Notes Payable 1,400 Office Supplies 18,500 Patents 80,600 Prepaid Insurance 408,000 Retained Earnings, January 1 12,000 Salaries & Wages Expense 4,000 Salaries & Wages Payable 84,000 Sales 2,550 Supplies Expense $ 3,360 3,360 80,000 28,000 1,500 20,000 3,250 34,000 117,400 2,400 600,000 3,500