Problem E The following data are for Leone Lumber Company:

LEONE LUMBER COMPANY Trial Balance 2010 December 31 Acct.

No.

Account Title Debits Credits 100 103 105 107 108 112 170 171 200 300 310 410 412 418 500 502 503 505 508 509 510 511 536 540 567 Cash Accounts Receivable Merchandise Inventory, 2010 January 1 Supplies on Hand Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation—Equipment Accounts Payable Capital Stock Retained Earnings, 2010 January 1 Sales Sales Returns and Allowances Interest Revenue Purchases Purchases Returns and Allowances Transportation-In Advertising Expense Sales Salaries Expense Office Salaries Expense Officers' Salaries Expense Utilities Expense Legal and Accounting Expense Interest Expense Miscellaneous Administrative Expense

$ 70,640 159,520 285,200 5,360 4,800 57,600 88,000 5,160

$ 500,840

$7,840 78,000 138,400 80,800 160,000 4,800 10,000 600 9,880

$ 17,600 102,800 200,000 219,640 1,122,360

$ 1,000

$4,040

$1,667,440 $1,667,440

 A total of USD 3,400 of the prepaid insurance has expired.

 An inventory of supplies showed that USD 1,700 are still on hand.

 Prepaid rent expired during the year is USD 50,600.

 Depreciation expense on store equipment is USD 8,800.

 Accrued sales salaries are USD 4,000.

 Accrued office salaries are USD 3,000.

 Merchandise inventory on hand is USD 350,000.

Prepare the following:

a. A work sheet for the year ended 2010 December 31. Refer to the chart of accounts shown in a separate file at the end of the text for any other account numbers you need.

b. A classified income statement. The only selling expenses are sales salaries, advertising, supplies, and depreciation expense—equipment.

c. A statement of retained earnings.

d. A classified balance sheet.