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.
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.