The trial balance for Fancy Petals Florist, Inc., dated May 31 of this year, follows. To reduce the number of accounts in the trial balance, Selling Expenses (control) is used in place of all selling expenses. Likewise, General Expenses (control) is used in place of all general expenses.

Additional information is as follows:

a. The charter states that authorized preferred 8 percent stock amounts to 1,400 shares and authorized common stock amounts to 20,000 shares.

b. Merchandise Inventory, May 31 ( ending inventory), $ 594,313.

c. No dividends were declared and paid during the year.

Required 

1. Prepare an income statement for the year ended May 31, 20—.

2. Prepare a statement of retained earnings for the year ended May 31, 20—.

3. Prepare a classified balance sheet.

Transcribed Image Text:

Fancy Petaks Florist, Inc. Trial Balance May 31, 20- Account Name Debit Credit Cash 93,542 Accounts Receivable 303,268 Allowance for Doubtful Accounts Merchandise Inventory Store Supplies 5.710 580,390 1,928 Store Equipment Accumulated Depreciation-Store Equipment Patents 220,400 35,557 16,585 Notes Payable Accounts Payable 32,000 154,782 Preferred 8 Percent Stock ($100 par) Paid-in Capital in Exoass of Par Value Common Stock ($20 stated value) Common Stock Subscribed Paid-in Capital in Exoass of Stated Value Retained Eamings 120,000 6,000 330,000 90,000 42,000 157.896 Sales 3,121,638 Purchases 2,146,267 Purchases Discounts 16,279 Freight in Selling Expenses General Expenses Interest Expense 84,780 410,970 117,094 4,712 Income Tax Expense 131,926 4,111,862 4,111,862