The following is an alphabetical list of accounts for Pembroke Corporation for the current year. All accounts have normal balances. The Income Tax rate is 40%.

Accounts Payable $23,600

Accounts Receivable $34,800

Accumulated DepreciationBuildings $105,000

Accumulated DepreciationEquipment $100,000

Additional Paid in Capital in Excess of Par $333,100

Advertising Expense $17,000

Allowance for Doubtful Account $8,750

Bad Debt Expense $2,700

Buildings $435,000

Cash $24,500

Common Stock $10 par $80,000

Delivery Expense $7,700

Depreciation ExpenseBuildings $10,000

Depreciation ExpenseEquipment $4,500

Dividends $5,800

Equipment $200,000

Income Tax Expense ?

Income Taxes Payable $18,270

Insurance and Property Tax Expense $8,500

Interest Expense $3,700

Inventory Beginning of the Year $37,800

Inventory End of the Year $34,100

Land $265,000

Loss on the Sale of Office Equipment $5,000

Mortgage Payable $30,000

Office and Administrative Salaries Expense $32,000

Office and Administrative Salaries Payable $5,500

Office Supplies Expense $5,500

Prepaid Expenses $6,400

Purchase Discounts Taken $4,100

Purchase Returns and Allowances $6,200

Purchases $173,000

Rent Revenue $16,900

Retained Earnings Beginning of the Year $283,700

Sales $340,700

Sales Commissions and Salaries $18,200

Sales Discounts Taken $4,900

Sales Returns and Allowances $12,100

Sales Supplies Expense $5,600

Short-term Note Receivable $15,000

Transportation-In $13,500

Unearned Rent Revenue $8,500

REQUIRED: Prepare in good form the Multistep Income Statement; the Statement of Changes in Retained Earnings; and a classified Balance Sheet for Pembroke Company for the current year.