Question

The adjusted trial balance of Marshall, Inc., follows: LO 4 A1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 A C B Account DebitC redit (Amounts in thousands) Marshall, Inc. Adjusted Trial Balance December 31, 2016 Cash Accounts receivable Inventories Prepaid expenses Property, plant, and equipment Accumulated depreciation—property, plant, and equipment Other assets Accounts payable Income tax payable Other liabilities Common stock Retained earnings (beginning, December 31, 2015) Dividend Sales revenue Cost of goods sold Selling, administrative, and general expenses Income tax expense Total $ 4,300 1,400 2,400 1,600 16,700 9,300 1,500 25,500 10,500 2,200 $ 75,400 $ 2,400 7,500 800 2,700 14,500 5,100 42,400 $ 75,400 Requirement 1. Prepare Marshall, Inc.’s, single-step income statement and statement of retained earnings for the year ended December 31, 2016, and its balance sheet on that date. Draw the arrows linking the three statements.

Answer 1