Your assistant prepared the following adjusted trial balance data for Commerce Company on December 31, 2020. The accounts are arranged in alphabetical order.

Required

a. Calculate the net income for the year ended December 31, 2020.

b. Prepare the closing entries.

c. Determine the Retained Earnings balance as at the end of the year.

d. Prepare a classified statement of financial position as at December 31, 2020. The note payable is due in six months and the loan payable is due in 5 years.

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$ 36,000 $ 82,000 Accounts Payable Land Accounts Receivable 67,000 Loan Payable 48,000 Miscellaneous Expenses Accumulated Depreciation, Buildings 20,000 13,000 Buildings 72,000 Notes Payable 15,000 Prepaid Insurance Cash 24,000 500 Common Shares 85,000 Retained Earnings 31,500 Sales Revenue Cost of Goods Sold 110,000 179,800 Depreciation Expense 4,500 Selling Expenses 27,000 Dividends Declared 12,400 Service Revenue 93,100 4,000 Dividends Payable Supplies 800 2,200 Income Tax Expense 8,000 Supplies Expense 1,200 Income Tax Payable 2,000 Unearned Revenue 1,400 Insurance Expense Utilities Expense 2,400 1,700 Interest Ex pense Wages Expense 60,000 300 Interest Payable Wages Payable 3,000 Inventory 30,000