QUESTION 4 (30 marks) The following lists (in random order) the accounts of Cottage Outfitters Inc. at December 31, 2017 from the adjusted trial balance. Cash $ 2,000 Income tax expense 48.000 Dividends 80,000 Accumulated depreciation-building 50,000 Inventory 400.000 Wages expense 150,000 Supplies 6,000 Sales 1.100,000 Prepaid Rent 10,000 Land 250.000 Accounts Recelvable 30,000 Bullding 500,000 Rent expense 40,000 Equlpment 90,000 Sales discounts 80,000 Accounts payable 15,000 Wages Payable 80,000 Income taxes payable 48,000 Advertising expense 20,000 Common shares 100,000 Retalned earnings 633.000 Sales returns and allowances 50.000 Accumulated depreciation-equipment 18,000 Cost of goods sold 500.000 Depreclation expense 39.000 Delivery expense 50,000 Note payable (due June 30, 2018) 400,000 REQUIRED: Prepare the following financial statements: (1) (10 marks) A multiple-step income statement in proper format for the year ended December 31, 2017 (2) (4 marks) A statement of retained earnings for the year ended December 31, 2017 (3) (12 marks) A classified statement of financial position as at December 31, 2017. (4) (4 marks) Prepare closing entries. QUESTION 4 (30 marks) The following lists (in random order) the accounts of Cottage Outfitters Inc. at December 31, 2017 from the adjusted trial balance. Cash $ 2,000 Income tax expense 48.000 Dividends 80,000 Accumulated depreciation-building 50,000 Inventory 400.000 Wages expense 150,000 Supplies 6,000 Sales 1.100,000 Prepaid Rent 10,000 Land 250.000 Accounts Recelvable 30,000 Bullding 500,000 Rent expense 40,000 Equlpment 90,000 Sales discounts 80,000 Accounts payable 15,000 Wages Payable 80,000 Income taxes payable 48,000 Advertising expense 20,000 Common shares 100,000 Retalned earnings 633.000 Sales returns and allowances 50.000 Accumulated depreciation-equipment 18,000 Cost of goods sold 500.000 Depreclation expense 39.000 Delivery expense 50,000 Note payable (due June 30, 2018) 400,000 REQUIRED: Prepare the following financial statements: (1) (10 marks) A multiple-step income statement in proper format for the year ended December 31, 2017 (2) (4 marks) A statement of retained earnings for the year ended December 31, 2017 (3) (12 marks) A classified statement of financial position as at December 31, 2017. (4) (4 marks) Prepare closing entries