Reference no: EM132821301

Problem 1: Prepare an income statement, the statement of stockholders' equity and the classified balance sheet.

Accounts Payable $28,000

Accounts Receivable $150,000

Equipment $220,000

Cost of Goods Sold $400,000

Supplies $36,000

Notes Payable (Due in 2years) $40,000

Rent Expense $12,000

Interest Expense $6,000

Sales Revenue $545,000

Sales Discount $45,000

Accumulated Depreciation $20,000

Depreciation Expense $10,000

Buildings $65,000

Income Tax Expense $8,000

Salaries Expenses $25,000

Cash $12,000

In addition, the company has common stock of $250,000 at the beginning of the year and issued additional shares for $50,000. The company also had retained earnings of $60,000 at the beginning of the year and paid dividend of $4,000 during the year.