Question

Presented below are the amounts of assets and liabilities of BPA, Inc. as of December 31, 2017, and revenues and expenses of the company for the year ended on that date.

Sales	$ 18,000,000
Cost of Goods Sold	$ 13,500,000
Wages Expense	$   2,700,000
Common Stock	$   2,250,000
Cash	$   2,059,650
Building	$   1,350,000
Mortgage Payable - Long Term	$   1,012,500
Notes Payable - Long Term	$      675,000
Marketing Expense	$      607,500
Accounts Receivable	$      517,500
Equipment	$      450,000
Accounts Payable	$      427,500
Income Tax Expense	$      405,000
Wages Payable	$      382,500
Dividends	$      337,500
Inventory	$      270,000
Land	$      225,000
Accumulated Depreciation	$      202,500
Utilities Expense	$      162,000
Rent Expense	$      112,500
Short-term Investments	$      112,500
Depreciation Expense	$        78,750
Retained Earnings Balance 12-31-16	$        67,500
Rent Revenue	$        67,500
Interest Revenue	$        63,000
Supplies	$        56,250
Insurance Expense	$        54,000
Delivery Expense	$        38,250
Prepaid Insurance	$        36,000
Supplies Expense	$        29,250
Interest Expense	$        27,000
Prepaid Rent	$        27,000
Property Tax Expense	$        13,500
Interest Payable	$          9,000
Miscellaneous Revenue	$          6,750
Taxes Payable	$          5,400

Requirements:

1. Prepare the company's multi-step income statement for the year ended December 31, 2017.
2. Prepare the company's statement of retained earnings for the year ended December 31, 2017.
3. Prepare the company's classified balance sheet at December 31, 2017.

Answer 1

DEPRECIATION EXPENSE NOT PROVIDED CLARITY TO WHICH ASSET IT BELONGS, THEREFORE ASSUMPTION HAS TAKEN IT IS EQUIPMENT

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