Projects Article Financial Statement Preparation and the Articulation Process Order of Preparation Income statement Revenue Less: Expenses Net income 1.000 (600) Net income to statement of retained earnings Statement of retained earnings Beginning of the period Plus: net income Less: dividends End of period 400 450 Balance sheet Assets Cash in bank Accounts receivable Total assets 600 End of period retained earnings to balance sheet - retained earnings 650 200 Liabilities and equity Liabilities Equity - retained earnings Total liabilities and equity 400 Statement of cash flows Operating activities Investing activites Financing Change in cash Beginning cash Ending cash 600 Ending cash agrees to cash on balance sheet 600 2 Project : Articulation Fidos Food Mart Adjusted Trial Balance September 30, 20XX Account Title Cash Accounts receivable Inventory Debits Credits 31,858 18,500 960 1,850 30.550 Balance Sheet 11,785 12,000 42,000 Supplies Equipment Accumulated depreciation - equipment Accounts payable Bonds payable (mature 12/31/XX) Common stock (200 shares @ $210/share, par $210) Retained earnings Sales revenue Operating expenses Rent expense Wages expense Totals 30,000 Income Statement 9,367 1,150 1,550 95.785 95,785 At the end of Fido's Food Mart's first month of operations, the account balances were as shown above. Accounts appear in ledger order, and the trial balance above illustrates which accounts are balance Sheet accounts and which accounts are income statement accounts. Required: 1. Using the above trial balance, prepare the following financial statements: a. Single-step income statement b. Statement of retained earnings c. Nonclassified balance sheet