Use these account balances to prepare the financial statements for Freddy's Fudge and Food Gifts. Each financial statement should be shown on the following three sheets of paper. The headings, subtotals, totals and formatting should be proper according to GAAP.

Freddy's Fudge and Food Gifts Account Balances December 31, 2021 Account Amounts

Accounts payable 31,520 Accounts receivable 77,770 Accrued payroll taxes 2,450 Accumulated depreciation 33,800 Additional Paid In Capital - Common Stock 6,000 Advertising expense 9,800 Allowance for Doubtful Accounts 7,200 Bonds payable 100,000 Buildings 98,600 Cash 15,425 Common stock 50,000 Cost of Goods Sold 948,332 Current portion of long-term debt 5,000 Depreciation expense 12,800 Discount on bonds 6,800 Dividends 20,000 Employee benefits 26,480 Equipment 45,500 Income tax expense 12,690 Insurance expense 5,600 Interest and dividend income 1,800 Interest expense (2,600) Inventory 89,650 Investments in stocks and bonds 48,529 Land 15,000 Long-term loans payable 35,000 Notes payable - line of credit 10,000 Office supplies 1,970 Office supplies expense 2,680 Other income 350 Payroll taxes 24,990 Preferred Stock 45,000 Prepaid insurance 2,100 Product sales 1,438,636 Rent expense 12,000 Repairs and maintenance expense 5,620 Retained earnings, Prior year-end 54,870 Salaries expense 283,525 Salaries payable 3,860 Sales expense 7,775 Sales returns and allowances 16,850 Travel expense 3,675 Treasury stock 15,000 Utilities expense 13,725

Freddy's Fudge and Food Gifts Balance Sheet December 31, 2021

Freddy's Fudge and Food Gifts Statement of Retained Earnings For the Year Ended December 31, 2021

Freddy's Fudge and Food Gifts Income Statement For the Year Ended December 31, 2021