The following is an alphabetical list of accounts for Pembroke…

The following is an alphabetical list of accounts for Pembroke Corporation for the current year. All accounts have normal balances. The Income Tax rate is 40%.

Accounts Payable $23,600

Accounts Receivable $34,800

Accumulated Depreciation—Buildings $105,000

Accumulated Depreciation—Equipment $100,000

Additional Paid in Capital in Excess of Par $333,100

Advertising Expense $17,000

Allowance for Doubtful Account $8,750

Bad Debt Expense $2,700

Buildings $435,000

Cash $24,500

Common Stock $10 par $80,000

Delivery Expense $7,700

Depreciation Expense—Buildings $10,000

Depreciation Expense—Equipment $4,500

Dividends $5,800

Equipment $200,000

Income Tax Expense ?

Income Taxes Payable $18,270

Insurance and Property Tax Expense $8,500

Interest Expense $3,700

Inventory Beginning of the Year $37,800

Inventory End of the Year $34,100

Land $265,000

Loss on the Sale of Office Equipment $5,000

Mortgage Payable $30,000

Office and Administrative Salaries Expense $32,000

Office and Administrative Salaries Payable $5,500

Office Supplies Expense $5,500

Prepaid Expenses $6,400

Purchase Discounts Taken $4,100

Purchase Returns and Allowances $6,200

Purchases $173,000

Rent Revenue $16,900

Retained Earnings Beginning of the Year $283,700

Sales $340,700

Sales Commissions and Salaries $18,200

Sales Discounts Taken $4,900

Sales Returns and Allowances $12,100

Sales Supplies Expense $5,600

Short-term Note Receivable $15,000

Transportation-In $13,500

Unearned Rent Revenue $8,500

REQUIRED: Prepare in good form the Multistep Income Statement; the Statement of Changes in Retained Earnings; and a classified Balance Sheet for Pembroke Company for the current year.