Multi-Step Income Statement and Classified Balance Sheet
The following items were taken from the financial statements of Wilson Inc. for 2010:
|
Accounts payable
|
15,780
|
|
Accounts receivable
|
8,470
|
|
Accumulated depreciation
|
23,000
|
|
Cash
|
16,080
|
|
Common stock
|
15,400
|
|
Cost of sales
|
41,250
|
|
Depreciation expense
|
5,000
|
|
Dividends
|
2,310
|
|
Equipment
|
68,420
|
|
Income tax expense
|
3,260
|
|
Insurance expense
|
4,680
|
|
Long-term liabilities
|
9,920
|
|
Prepaid insurance
|
5,970
|
|
Repair expense
|
4,200
|
|
Retained earnings, Jan. 1
|
28,450
|
|
Salaries expense
|
12,420
|
|
Salaries payable
|
5,210
|
|
Sales revenue
|
78,420
|
|
Utilities expense
|
4,180
|
Required
Prepare a multi-step income statement for 2010 and a classified balance sheet at December 31, 2010.
Hint: You must calculate ending retained earnings.