McMinn Retail, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2011. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the “normal” balance for that account.

a. Prepare an income statement for the year ended December 31, 2011, which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than cost of goods sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share.
b. Prepare a statement of retained earnings for the year ending December 31, 2011.
c. Prepare a statement of financial position (balance sheet) as of December 31, 2011, following these guidelines:
• Include separate asset and liability categories for those assets which are “current.”
• Include and label amounts for total assets, total liabilities, total stockholders’ equity, and total liabilities and stockholders’ equity.
• Present deferred income taxes as a noncurrent liability.
• To the extent information is available that should be disclosed, include that information in yourstatement.

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Accounts payable Accounts receivable Accumulated depreciation: office equipment. Additional paid-in capital (common stock). . Bonds payable (due December 31, 2014) Cash Common stock (1,800 shares, $10 par value) ..___ . .. . $ 2,600 12,000 7,000 22,500 15,200 18,000 100,575 5,750 2,750 5,000 8,190 900 37,500 17,500 2,500 41,000 900 520 5,000 1,750 1,800 6,100 21,050 88,095 226,000 2,500 3,200 2,250 4,120 Deferred income taxes. Depreciation expense: office equipment Dividends declared .. Income tax expense. . . . Insurance expense . . Land Merchandise inventory Notes payable (due December 31, 2012) Office equipment Office supplies Office supplies expense. Preferred stock (250 shares, $20 par value). . . . . . . .. Premium on bonds payable Rent expense. Retained earnings (January 2011) Salaries expense Sales Sales returns and allowances Treasury stock (200 common shares at cost). . .. Utilities expense...