Required

a.

Prepare an Income statement

b.

Determine the amount of retained earnings at the end of 2016.

c.

Prepare a classified statement of financial position as at December 31, 2016.

Little Lads and Ladies Ltd. sells children's clothing. At the end of December 2016, it had the following adjusted account balances, which are listed in random order: Cash Wages Payable Supplies Expense Equipment Wages Expense Prepaid Expenses Cost of Goods Sold Sales Revenue Accounts Receivable Rent Expense Bank Loan Payable Advertising Expense Accounts Payable S 3,000 S 600 1,200 500 20,000 200 300 1,500 17,600 8,000 400 800 300 Utilities Expense 500 Dividends Declared 4,200 Depreciation Expense 23,000 Common Shares 25,000 Telephone Expense 400 32,000 66,450 10,00 Interest Expense Accumulated Depreciation, Equipment Retained Earnings 0Inventory 4,800 Repairs and Maintenance Expenses 3,800 Supplies 750 Interest Payable 5,000