On December 31, 2016 (the end of its first year of operations), Minute Print Company had the following account balances:

Bank loan payable (due in three years) ............$40,000

Wage expense ..................... 93,000

Supplies ....................... 68,000

Dividends payable .................. 1,500

Sales ....................... 486,000

Cash ........................ 24,000

Supplies expense ...................214,500

Wages payable .................... 4,500

Prepaid rent ................... 2,000

Interest expense .................. 2,500

Rent expense ................... 12,000

Dividends declared ................. 3,000

Accounts payable .................$ 8,000

Common shares ................. 30,000

Accounts receivable ..................30,000

Miscellaneous expenses ................ 9,000

Equipment .................... $112,000

Retained earnings ................... ?

Required:

a. Identify the accounts that would appear on the statement of income, and use them to calculate the net earnings for the year.

b. Find the amount of retained earnings at December 31, 2016, by subtracting the dividends declared from the net earnings you calculated in part “a.”

c. Prepare a classified statement of financial position for December 31, 2016. Use the retained earnings amount calculated in part “b.”