Refer to the trial balance for Taggar Enterprises Inc. prepared in P3-9A. In addition to this information, note that during the year, common shares in the amount of $2,000 were issued and $1,250 of the mortgage is currently due.

P3-9A

Instructions
Prepare an income statement, statement of changes in equity, and statement of financial position for the year.

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Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Cash Common shares Cost of goods sold Equipment Income tax expense 1,500 3,000 4,000 1,000 15,000 1,800 5,000 13,700 3,000 1,000 Income tax payable Interest expense Land Long-term investments Merchandise inventory Mortgage payable, due 2021 Office expense Prepaid insurance Retained earnings, July 1, 2014 Sales $ 100 100 7,400 3,550 5,100 15,000 3,300 900 6,250 25,000