Reference no: EM132673131

Question - At December 31 2020 (the end of its second year of operations), Happy Corporation had the following balances in its accounts:

Accounts Payable 35

Accounts Receivable 45

Accumulated Depreciation - Building 12

Accumulated Depreciation - Equipment 22

Building 43

Building expenses 38

Cash 410

Common Shares 200

Cost of Goods Sold 800

Depreciation Expense 16

Equipment 100

Income tax payable 45

Income tax expense 80

Interest Expense 10

Interest Payable 6

Inventory 15

Mortgage Receivable 44

Mortgage Payable 190

Office Expenses 88

Pre-paid expenses 16

Rent Expense 99

Retained Earnings

Sales 1,000

Other information:

During the year $50 of dividends were paid to the shareholders.

Retained Earnings at the Beginning of the period were $256.

REQUIRED - Prepare the following financial statements:

1. Classified Balance Sheet

2. Income Statement

3. Statement of Retained Earnings