Question

how do I prepare a classified balance sheet, multiple step income statement, and retained earnings please help

Accounts payable	$      40,000		Gain on sale of equipment X	$        2,000
Accounts receivable	50,000		Income tax expense X	5,000
Accumulated depreciation - building	10,000		Inventory	100,000
Additional paid-in capital	800,000		Interest expense X	4,000
Allowance for uncollectible accounts	5,000		Land	200,000
Bonds payable, due in 2029	800,000		Note payable, due 10/1/20	100,000
Building	641,000		Preferred stock	300,000
Cash	1,500,000		Prepaid insurance	5,000
Common stock	500,000		Rent expense X	10,000
Cost of goods sold X	50,000		Retained earnings, 1/1/19 X	75,000
Current maturities of long-term debt	40,000		Sales revenue X	120,000
Deferred revenue	50,000		Short-term investments X	112,000
Depreciation expense X	5,000		Supplies expense X	15,000
Discount on bonds payable	30,000		Treasury stock	100,000
Dividends X	15,000

Accounts payable

Accounts receivable

Accumulated depreciation - building

Allowance for uncollectible accounts

Bonds payable, due in 2029

Building

Cash

Common Stock

Cost of goods sold

current marries of long-term debt

deferred revenue

depreciation expense

discount on bonds payable

dividends

gains on sale of equipment

income tax expense

inventory

interest expense

land

note payable due 10/20

preferred stock

prepaid insurance

rent expense

sales revenue

retained earnings

treasury stock

supplies expense

short-term investments

Answer 1

Income Statement:

Particulars	Amount ($)
Sales	120,000
Cost of Goods Sold	50,000
Gross Profit	70,000
Operating Expenses
Depreciation Expense	5,000
Rent Expense	10,000
Supplies Expense	15,000
Income from Operations	40,000
Non -Operating Income and Expenses
Gain on Sale of Equipment	2,000
Interest Expense	4,000
Income Tax Expense	5,000
Total Non-Operating Income	(7,000)
Net Income (40,000-7,000)	33,000

Statement of Retained Earnings:

Particulars	Common Stock	Retained Earnings
Balance at 1 January 2019	500,000	75,000
Changes in equity during the year
Additional Paid in Capital	800,000
Dividends		(15,000)
Income for the year		33,000
Balance at 31 December 2019	1,300,000	93,000

Balance Sheet:

Assets	Amount ($)
Non Current Assets
Land	200,000
Building	631,000
Current Assets
Cash	1,500,000
Inventory	100,000
Accounts Receivable	45,000
Short Term Investments	112,000
Treasury Stock	100,000
Prepaid Insurance	5,000
Total Assets	2,693,000
Equity and Liabilties
Shareholders Equity
Common Stock	1,300,000
Preferred Stock	300,000
Retained Earnings	93,000
Non-Current Liabilities
Bonds payable, due in 2029	800,000
Discount on Bonds Payable	(30,000)
Current Liabilities
Accounts Payable	40,000
Current maturities of long-term debt	40,000
Deferred revenue	50,000
Note payable, due 10/1/20	100,000
Total Equity and Liabilties	2,693,000