Question
The following reflects Ace Inc.s adjusted accounts at their normal balances for the year ended December 31, 2019. Cash 80,000 Accounts Receivable 15,000 Supplies 3,000
The following reflects Ace Inc.s adjusted accounts at their normal balances for the year ended December 31, 2019.
Cash | 80,000 |
Accounts Receivable | 15,000 |
Supplies | 3,000 |
Inventory | 150,000 |
Prepaid Insurance (represents 2 years) | 50,000 |
Equipment | 300,000 |
Accumulated Depreciation - Equipment | 40,000 |
Land | 75,000 |
Patent | 5,000 |
Accounts Payable | 145,000 |
Note Payable (due in 3 equal annual installments) | 36,000 |
Deferred Revenue (represents 8 months) | 16,000 |
Common Stock (50,000 shares authorized, $5 par, 20,000 shares issued and outstanding |
100,000 |
Additional Paid in Capital | 30,000 |
Retained Earnings | 111,000 |
Dividends | 70,000 |
Sales Revenue | 1,360,000 |
Sales Discounts | 60,000 |
Cost of Goods Sold | 455,000 |
Wages Expense | 435,000 |
Insurance Expense | 25,000 |
Rent Expense | 40,000 |
Interest Expense | 10,000 |
Income Tax Expense | 65,000 |
Required: Prepare a multi-step income statement, statement of retained earnings, and classified balance sheet in proper format for Ace Inc. for the year ended December 31, 2019.
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