The unadjusted trial balance for JKF Inc is provided below.

1. Use along with the notes provided below to prepare a multi-step income statement, a statement of stockholders equity and a classified balance sheet. Prepare journal entries to show the accounting treatment for each of the adjustments below.

Use the comparative balance sheet and the additional information provided to prepare a cash flow statement for Yannik Inc for the year ended 12/31/2017.

	2017	2016
Cash	600,000	400,000
Accounts receivable (net)	400,000	450,000
Inventory	600,000	500,000
Equipment	1,000,000	600,000
Accumulated depreciation	(300,000)	(250,000)
TOTAL	2,300,000	1,700,000
Accounts payable	500,000	300,000
Notes payable - Long-term	500,000	400,000
Common stock	800,000	700,000
Retained earnings	500,000	300,000
TOTAL	2,300,000	1,700,000

Notes

1. Net income was $300,000.
2. Net income include a gain on sale of equipment equal to $20,000. The equipment had a book value of $80,000 at the time of sale.
3. Depreciation for the year was $50,000
4. Dividends of 100,000 have been declared and paid.
5. Increases or decreases in Equipment, Common Stock or Notes Payable refers to relevant purchases, issuances sales or retirements.