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.