Question 2:

Norris Corporation's capital structure consists solely of shares of common stock, 50,000 shares of which have been authorized. At 12/31/19, an analysis of the accounts on the adjusted trial balance and discussions with company officials revealed the following information: Accounts payable $ 43,400 Accounts receivable 135,000 Accrued interest payable 1,500 Accumulated depreciation 270,000 Additional paid-in capital 470,000 Allowance for doubtful accounts 7,500 Bonds payable (maturity 7/1/24) 300,000 Bond sinking fund 33,000 Cash 30,000 Common stock, $10 par 200,000 Cost of goods sold 976,500 Dividend revenue 12,000 Dividends declared 43,500 Error in 2017 depreciation, taken in excess 60,000 General and administrative expenses 225,000 Interest expense 25,500 Inventory 187,500 Land 555,000 Loss on sale of assets from discontinued business segment, 90,000 net of tax Machinery and equipment 675,000 Marketable securities 60,000 Materials and supplies 60,000 Patents 150,000 Retained earnings, 1/1/19 435,000 Sales 1,650,000 Selling expenses 192,000 Unearned service revenue 16,600 Unrealized holding loss on available for sale securities, net of 28,000 taxThe following information is also available: The general and administrative expenses include a $50,000 loss incurred from an employee strike in November. In February, 2020, before issuance of the financial statements, Norris learns that one of its major customers has filed for bankruptcy. Norris carries receivables of about $10,000 more than had been provided in the allowance. Norris has not yet accrued income tax expense; the applicable rate is 30%. Required: Prepare a multiple step income statement in good form for the year ended 12/31/19, a separate statement of comprehensive income, a statement of retained earnings, and the classified balance sheet at 12/31/19