The following accounts were taken from the records of Best Company on the year end (December 31, 2021) after adjusting entries being recorded and posted; all accounts have normal balances:

Account payables $ 10,400

Account receivables 12,800

Cost of goods sold 16,600

Capital stock 37,400

Cash 10,800

Sales Revenue 49,600

Land 30,000

Sales Salaries expense 6,000

Advertising expense 2,600

Sales Salaries payable 2,000

Interest expense 1,960

Rent expense 2,000

Utilities expense 1,440

Income Tax Expense 2,000

Income Tax Payable 800

Investment (long-term) in ZYX, Inc shares 11,400

Depreciation Expense-Equipment 4,800

Sales Discounts 2,000

Accumulated Depreciation-Equipment 7,200

Inventory 16,000

Bonds Payable (Due in ten years) 33,000

Retained Earnings (January 1, 2021) 5,000

Dividends ?

Equipment 24,000

Additional information:

Total assets (end of the year) ?

Total assets (beginning of the year) 94,200

Sales Salaries and Advertising expenses are Selling expenses and other operating expenses are General and Administrative expenses.

Number of share outstanding during the year is 5,100. No new shares were issued during the year. The stock was selling at $20 per share at the year end.

No additional entries are required.

REQUIREMENT: (Show your detailed work)

(a) Prepare Classified Balance Sheet, Multiple-Step Income Statement and Statement of Retained Earnings of Best Company using the proper format and all the required accounting conventions.

(b) Prepare the closing entries for Best Company.

Use Financial Statements Preparation Conventions for all financial statements:

Have titles with three lines including Name of the company, name of the statement, and time or time period in this order.

The above statement is called classified Balance Sheet, but still has Balance Sheet in the title.

Columns do not mean debits and credits (just used to make the presentation clear).

First amount in each column must have a $ sign.

Not every amount can have a $ sign.

Single line is used for addition or subtraction - subtotal, amount below single line must have a $ sign.

The final total has a double line under it and is not used in subsequent calculations, has $ sign.

Section that has more than one item must have a subtotal and any section with just one item should not have a subtotal.