Argyle Company has the following account balances at December 31, 2004. During the year, Argyle had 10,000 shares of stock outstanding.

Argyle Company

Account Balances

at December 31, 2004

Account Balance

Cash ................. $ 4,650

Accounts receivable ........... 16,350

Inventory ............... 30,500

Supplies ............... 7,700

Prepaid insurance ............ 3,550

Equipment .............. 42,500

Accumulated depreciation—equipment .... 17,500

Buildings ...............170,000

Accumulated depreciation—buildings ...105,000

Land ................ 10,000

Patents ................ 3,000

Accounts payable ............ 18,250

Wages payable .............. 3,450

Interest payable ............. 1,700

Income taxes payable .......... 4,050

Notes payable, current portion ........ 2,500

Account Balance

Notes payable, long-term ......... 37,500

Owners' investment ............ 25,000

Retained earnings, December 31, 2003 ...... 60,150

Dividends ............... 15,000

Sales revenue ...............130,000

Cost of goods sold ............. 62,500

Wages expense ............. 16,000

Utilities expense .............. 2,000

Depreciation expense ........... 1,050

Insurance expense ............. 1,500

Supplies expense .............. 2,300

Interest expense ............. 3,650

Advertising expense ............. 1,450

Patent expense ............... 400

Income tax expense ............. 11,000

Required

A. Prepare an income statement in good form based on Argyle Company's account balances.

B. Prepare a classified balance sheet as of December 31, 2004. Include appropriate headings and subheadings.