Question 1 (Financial Statements Revisited One Last Time)

Using the adjusted trial balances for December 31, 20xx (fiscal year end), provide a multiple-step income statement, statement of retained earnings, and classified balance sheet for the year ending December 31, 20xx. These statements should be in the appropriate format.

Sales Revenue $ 1,094,715 Building $ 844,205 Cost of Goods Sold $ 463,832 Accumulated Depreciation (Building) $ 261,926 Additional Paid in Capital-Common Stock $ 248,442 Land $ 161,474 Inventory $ 121,774 Retained Earnings (Beginning) $ 104,236 Long-Term Notes Payable $ 96,120 Bond Payable (Long-Term) $ 92,965 Additional Paid in Capital-Preferred Stock $ 74,942 Salaries Expense (Admin) $ 60,709 Rent Expense (Selling) $ 58,451 Unearned Revenue $ 54,089 Accounts Receivable (Gross) $ 53,937 Goodwill $ 50,554 Held-to-Maturity Securities $ 45,266 Accounts Payable $ 44,135 Treasury Stock $ 37,866 Patents, Net $ 33,088 Interest Expense $ 30,721 Cash $ 26,791 Equipment $ 23,858 Income Tax Expense $ 23,817 Trading Securities $ 22,412 Trademarks, Net $ 16,163 Accumulated Depreciation (Equipment) $ 12,936 Common Stock $ 12,330 Depreciation Expense (Building-Admin) $ 11,806 Prepaid Rent $ 6,948 Depreciation Expense (Equipment-Selling) $ 6,209 Current Portion of Note Payable $ 5,837 Preferred Stock $ 5,354 Supplies $ 4,516 Salaries Payable $ 4,434 Bad Debt Expense $ 4,194 Supplies Expense (Admin) $ 3,533 Allowance for Doubtful Accounts $ 2,697 Available-for-Sale Securities $ 2,015 Gain on Sale of Building $ 1,955 Unrealized Loss on Trading Securities $ 1,736 Extraordinary Gain, Net of Taxes $ 1,664 Common Stock Dividends $ 1,324 Advertising Expense (Selling) $ 1,228 Unrealized Gain on Available for Sale Securities $ 852 Preferred Stock Dividends $ 780 Loss from Discontinued Operations, Net of Taxes $ 422