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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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