Reference no: EM132937359

Question - Listed below are the accounts for Company, Inc. and their balances as at 12/31/20.

Accounts Payable 200,000

Accounts Receivable 80,000

Accumulated Amortization 46,000

Advertising Expense 19,000

Amortization 26,000

Building 300,000

Cash 105,000

Common Shares 250,000

Cost of Goods Sold 500,000

Dividends Payable 20,000

Equipment 140,000

Interest Expense 5,000

Inventory 120,000

Notes Payable, Long-Term 10,000

Preferred Shares 50,000

Rent Expense 75,000

Retained Earnings 55,000

Sales 825,000

Salaries Payable 60,000

Salary Expense 100,000

Tax Expense 18,000

Taxes Payable 9,000

Utilities Expense 40,000

Warranty Expense 15,000

Warranty Liability 18,000

The beginning balance of Retained Earnings was $98,000 and of Common Shares was $200,000. Company, Inc. issued Common Shares of $50,000 during the year.

Required - Prepare a classified income statement and a statement of changes in equity for the year, along with a classified balance sheet as of the end of the year.