question 7 please. i need help with 8 as well i posted it separately.

7. Prepare a multi-step income statement and statement of retained earnings for the year ended December 31, 2018. Prepare a classified balance sheet as of December 31, 2018. Assume Interest Receivable is a current asset and Interest Payable is a current liability Plant Assets, Natural Resources, ar In addition to purchasing the franchise, Top Quality Appliance Long Beach will also purchase land with an existing building to use for its retail store, store fixtures, and office equipment. The business will purchase appliances from TQA and resell them in its store, primarily to local building contractors for installation in new homes. Following is the chart of accounts for Top Quality Appliance-Long Beach. As a new business,all beginning balances are sO. Top Quality Appliance-Long Beach Chart of Accounts Common Stock Retained Earnings Dividends Sales Revenue Interest Revenue Cost of Goods Sold Franchise Fee Expense Salaries Expense Utilities Expense insurance Expense Supplies Expense Bad Debt Expense Bank Expense Credit Card Expense Depreciation Expense-Building Depreciation Expense-Store Fixtures Depreciation Expense Office Equipment Amortization Expense-Franchise Interest Expense Cash Short and Over Cash Petty Cash Accounts Receivable Allo Nance for Bad Debts Merchandise inventory Office Supplies Prepaid insurance Interest Receivable Notes Receivable Land Building Accumulated Depreciation-Building Store Fixtures Accumulated Depreciation- Store Fixtures Office Equipment Accumulated Depreciation-Office Equipment Franchise Accounts Payable Interest Payable Notes Payable Top Quality Appliance-Long Beach completed the following transactions during 2018, its first year of operations: Received $500,000 cash and issued common stock. Opened a new checking account at Long Beach National Bank and deposited the cash received from the stockholders a. Paid $50,000 cash for a TOA franchise b. Paid $200,000 cash and issued a $400,000, 10-year, 5% notes payable for land with an existing building. The assets had the following market values: Land, $100,000; Building, $500,000 C. Paid $75,000 for store fixtures. d. e. Paid $45,000 for office equipment f. Paid $600 for office supplies. g. Paid $3,600 for a two-year insurance policy h. Purchased appliances from TOA (merchandise inventory) on account for $425,000 i. Established a petty cash fund for $150 j Sold appliances or account to B8B Contractors for $215,000, terms n/20 (cost, $86,000), k. S old appliances to Davis Contracting for $150,000 (cost, $65,000), receiving a 6-month, 8% note l. Recorded credit card sales of $80,000 (cost, $35,000), net of processor fee of 2%. m. Received payment in full from B&B Contractors. n. Purchased appliances from TOA on account for $650,000. o. Made payment on account to TQA, $300,000. p. Sold appliances for cash to LB Home Builders for $350,000 (cost, $175,000). q. Received payment in full on the maturity date from Davis Contracting for the note r. Sold appliances to Leard Contracting for $265,000 (cost, $130,000), receiving a 9-month, 8% note. s. Made payment on account to TQA, $500,000 t. Sold appliances on account to various businesses for $985,000, terms n/30 (cost, $395,000). u. Collected $715,000 cash on account. v. Paid cash for expenses: Salaries, $180,000; Utilities, $12,650 w. Replenished the petty cash fund when the fund had $62 in cash and petty cash tickets for $85 for office supplies x. Paid dividends, $5,000 y, Paid the franchise fee to TQA of 5% of total sales of $2,045,000. 0 Beginning Balance, January 1, 2018 Daposits and other credits: $500,000 78,400 215,000 350,000 715,000 1,565 1,859,965 Interest Revenue Checks and other debits: EFT to Bank Checks(1) Checks: 125 50,000 200,000 45,000 75,000 150 3,600 600 300,000 500,000 192,650 2,340 Bank service charge (1,369,465) $ 490,500 Ending balance, December 31, 2018 (0Bank Checks is a company that prints business checks (considered a bank expense) for Top Quality Appliance-Long Beach