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. Create a Balance Sheet, Statement of Retained Earnings, and Income Statement with the following accounts:

Freddy's Fudge and Food Gifts

Account Balances

December 31, 2021

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 suppllies 1,970

Office suppllies 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