The adjusted trial balance for Raintree Corporation for the year ended December 31, 20x2 is shown below. Account Title Debits CreditsCash 60,400Accounts receivable 265,000Prepaid rent 6,500Inventory 38,000Office equipment 480,000Accumulated depreciation 202,000Accounts payable 46,000Notes payable (due in six months) 24,000Salaries payable 6,300Interest payable 800Common stock 400,000Retained earnings 85,000Sales revenue 630,000Cost of goods sold 378,000Salaries expense 94,500Rent expense 19,500Depreciation expense 48,000Interest expense 1,600Advertising expense 2,600Totals 1,394,100 1,394,100

Required:1.

Prepare an income statement for the year ended December 31, 20x2.

2. Prepare a classified balance sheet as of December 31, 20x2.