The Basis for Business Decisions, 1eth Edeion COMPREHENSIVE PROBLEM 3 untain Sports, Inc. Searts, Inc., is a retailer that has engaged you to assist in the preparation of its finan at December 31. 2018. Following are the correct adjusted account balances ode, as of that date. Each balance is the "normal" balance for that account normal" balance is the same as the debit or credit side that increases the account) Accounts psyable $ 12,750 depreciatiotomce equipment onal poon capital (common stock. . 12,000 13,000 22500 19200 18,000 100,575 5,750 2.750 Bonds pryable (due December 31, 2021), mn stock (1800 shares 10 r. Cest of goods sold Deferred income taxes Depreciation expense: offtice equipment Dividends lared. ncome tax expense . Insurance expense .. 8,190 900 39,500 17,500 Merchandise inventory Notes payable idue December 31. 2019 41,000 900 520 5,000 ,750 ,800 6,100 21,050 88,095 226,000 Office supplies Office supplies expense. Premium on bonds payable. Prepaid rent.. Rent expense Retained earmings (January 2018) Salaries expense.. Sales taxes payable Treesury stock (200 common shares at cos). Utities expense 4,120 an income statement for the year ended December 31, 2018, which includes amounts for gross profit, income before inc sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share b. Prepare a statement of retained earnings for the year ending December 31, 2018 t. Prepare a statement of financial position (balance sheet) as of December 31, 2018, following these guidelines: Include separate asset and liability categories for those items that are "curremt. Include and label amounts for total assets, total liabilities, otal stockholders' equity, and total liabilities and stockholders' equity Present deferred income taxes as a noncurrent liability 521 To the extent information is available that should be disclosed, include the parenthetical disclosure of that information