The following account balances are provided for Rustic Company at December 31, 2004. Revenues and expense accounts

Question:

The following account balances are provided for Rustic Company at December 31, 2004. Revenues and expense accounts cover the fiscal year ending on that date. All numbers are dollars except shares outstanding.
Account Amount
Accounts payable ............... $ 14,000
Accounts receivable .............. 18,000
Accumulated depreciation ........... 30,000
Cash ..................... 6,000
Common stock, ............ 20,000
Cost of goods sold .............. 35,000
Current portion of long-term debt ........ 2,000
Income taxes ................. 6,000
Interest expense ............... 4,000
Interest payable ................ 500
Inventory ................... 34,000
Long-term debt ................ 40,000
Net income ................. 12,000
Paid-in capital in excess of par .......... 30,000
Patents and trademarks ............. 4,000
Prepaid insurance ............... 2,500
Property, plant and equipment, cost ......... 150,000
Retained earnings ................ 78,000
Sales revenues ................ 110,000
Selling, general, and administrative expenses .... 65,000
Service revenues ................ 12,000
Supplies .................... 3,000
Wages payable ................ 3,000
Shares outstanding ................ 20,000

Required
A. Prepare an income statement in good form for Rustic Company.
B. Prepare a classified balance sheet.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...