Andrea's Athletic Wear Inc.'s unadjusted trial balance amounts (prior to recording the adjusting entry to update Merchandise Inventory and Cost of Goods Sold accounts) appear in alphabetical order as follows on December 31, 2015, the end of its fiscal year:

Additional information:
1. Andrea's Athletic Wear uses a periodic inventory system.
2. A physical inventory count determined that merchandise inventory on December 31, 2015, was $108,900.
3. Of the mortgage payable, $18,750 is due in the next year.
4. Common shares of $37,500 were issued during the year.
Instructions
Prepare a multiple-step income statement and statement of changes in equity for 2015, and statement of financial position as at December 31.

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Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Administrative expenses Buildings $129,450 Merchandise inventory, Jan. 1 66,300 Mortgage payable 77,700 64,350 271,350 Prchases 285,000 Purchase discounts 25,500 Purchase returns and allowances 112,500 Retined earnings 12,000 Salaries payable 165,000 Sales 60,750 187,500 3,600 7,200 602,400 33,750 9,600 102,900 5,250 955,500 Prepaid insurance Property tax payable Common shares Dividends Equipment Freight in Income tax expense Interest expense 8,400Sales discounts 24,000 Sales returns and allowances 15,600 Selling expenses 12,000 11,250 12,450 112,500 Unrned revenue