Problem 5 - B The following accounts and balances were found in the Sienna Company's accounting records for the year ended December 31 of the current year. Accounts payable Accounts receivable C Merchandise Business Financial Statements Accumulated depreciation - equipment Advertising expense Cash Common stock Cost of merchandise sold Depreciation expense - equipment Dividends Equipment Interest expense Merchandise inventory Miscellaneous selling expense Notes payable Office rent expense Office salaries expense Prepaid rent Retained earnings, January 1 Salaries payable Sales Sales commissions expense $ 20 140 200 200 300 100 6,000 80 700 800 20 150 300 250 100 700 10 300 130 10,000 1,500 Requirements: 1) Prepare a multiple-step income statement. 2) Prepare a retained earnings statement. 3) Prepare a classified balance sheet, assuming that $25 of the note payable is due next year and the balance due during the next decade.

Problem 5 - B Merchandise Business Financial Statements The following accounts and balances were found in the Sienno Comparr's accounding records for the year ended December 31 of the current year. Requirements: 1) Prepare a multiple-step income statement. 2) Prepare a retained eamings statement. 3) Prepare a classifed bulance sheet, assuming that $25 of the note payable is due next year and the balance due during the next decade. Problem 5 - B Merchandise Business Financial Statements The following accounts and balances were found in the Sienno Comparr's accounding records for the year ended December 31 of the current year. Requirements: 1) Prepare a multiple-step income statement. 2) Prepare a retained eamings statement. 3) Prepare a classifed bulance sheet, assuming that $25 of the note payable is due next year and the balance due during the next decade