Prepare income statement and statement of retained earnings

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Question - Using the following alphabetical list of accounts, prepare the Income Statement, Statement of Retained Earnings, and Classified Balance Sheet for Best Company, Inc. The company started business on January 1, 2020 and would like the reports prepared for their first year of operations, which ended on December 31, 2020.

Accounts Payable

$25,000

Accounts Receivable

65,000

Accumulated Depreciation - Building

40,000

Accumulated Depreciation - Equipment 

13,000

Advertising Expense

65,000

Building

200,000

Cash

50,000

Common Stock

100,000

Depreciation Expense - Building

40,000

Depreciation Expense - Equipment 

13,000

Dividends

50,000

Equipment

75,000

Insurance Expense

80,000

Interest Expense

15,000

Land

70,000

Notes Payable - due in 6 years

190,000

Office Supplies

10,000

Office Supplies Expense

12,000

Prepaid Insurance

53,000

Salaries Expense

425,000

Salaries Payable

5,000

Service Revenue

850,000

Reference no: EM133114872

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