Using the chart above calculate :

- Balance Sheet

- Income Statement

REVIEW PROBLEM-CLASS 1 REVIEw OF FINANCIAL STATEMENTS THE FOLLOWING IS THE CHART OF ACCOUNTS FOR MICRODRIVE, INC. AT DEC. 31, 2016 AND 2015 2016 2015 387,000 1,050,000 ACCOUNTS PAYABLE 625,000 ACCOUNTS RECEIVABLE 75,000 750,000 ACCRUED LIABILITIES ACCUMULATED DEPRECIATION ADDITIONAL PAID-IN CAPITAL ALLOWANCE FOR BAD DEBTS CASH AND EQUIVALENTS COMMON STOCK ($2 PAR, 20,000 SH. O/s) 1,875,000) (1,375,000) (100,000) 40,000 9,100,000 960,000 960,000 (125,000) 200,000 40,000 70,000 9,500,000 500,000 380,000 300,000 3,700,000 3,399,000 150,000 COMMON STOCK DIVIDENDS 60,000 COST OF GOODS SOLD DEPRECIATION EXPENSE 425,000 INCOME TAX EXPENSE INTEREST EXPENSE INVENTORY LONG-TERM DEBT 370,000 275,000 3,212,000 2,500,000 105,000 11,900,000 375,000 700,000 LONG-TERM INVESTMENTS 95,000 NET SALES 12,500,000 1,275,000 NOTES PAYABLE PAYROLL EXPENSE 750,000 200,000 PREFERRED STOCK ($100 PAR, 2,000 SH. O/s) 200,000 PREFERRED STOCK DIVIDENDS 9,000 PREPAID EXPENSES PROPERTY, PLANT, AND EQUIPMENT RETAINED EARNINGS SELLING AND ADMINISTRATIVE EXPENSES 50,000 6,625,000 2,871,000 500,000 75,000 9,000 38,000 4,375,000 2,380,000 475,000 87,000 SHORT-TERM INVESTMENTS REQUIRED USING THE CHART OF ACCOUNTS ABOVE, PREPARE THE FOLLOWING STATEMENTS FOR THE YEARS ENDED DEC. 31, 2016 AND 2015: REVIEW PROBLEM-CLASS 1 REVIEw OF FINANCIAL STATEMENTS THE FOLLOWING IS THE CHART OF ACCOUNTS FOR MICRODRIVE, INC. AT DEC. 31, 2016 AND 2015 2016 2015 387,000 1,050,000 ACCOUNTS PAYABLE 625,000 ACCOUNTS RECEIVABLE 75,000 750,000 ACCRUED LIABILITIES ACCUMULATED DEPRECIATION ADDITIONAL PAID-IN CAPITAL ALLOWANCE FOR BAD DEBTS CASH AND EQUIVALENTS COMMON STOCK ($2 PAR, 20,000 SH. O/s) 1,875,000) (1,375,000) (100,000) 40,000 9,100,000 960,000 960,000 (125,000) 200,000 40,000 70,000 9,500,000 500,000 380,000 300,000 3,700,000 3,399,000 150,000 COMMON STOCK DIVIDENDS 60,000 COST OF GOODS SOLD DEPRECIATION EXPENSE 425,000 INCOME TAX EXPENSE INTEREST EXPENSE INVENTORY LONG-TERM DEBT 370,000 275,000 3,212,000 2,500,000 105,000 11,900,000 375,000 700,000 LONG-TERM INVESTMENTS 95,000 NET SALES 12,500,000 1,275,000 NOTES PAYABLE PAYROLL EXPENSE 750,000 200,000 PREFERRED STOCK ($100 PAR, 2,000 SH. O/s) 200,000 PREFERRED STOCK DIVIDENDS 9,000 PREPAID EXPENSES PROPERTY, PLANT, AND EQUIPMENT RETAINED EARNINGS SELLING AND ADMINISTRATIVE EXPENSES 50,000 6,625,000 2,871,000 500,000 75,000 9,000 38,000 4,375,000 2,380,000 475,000 87,000 SHORT-TERM INVESTMENTS REQUIRED USING THE CHART OF ACCOUNTS ABOVE, PREPARE THE FOLLOWING STATEMENTS FOR THE YEARS ENDED DEC. 31, 2016 AND 2015