Dynamite Sales (organized as a corporation on September 1, 2022) has completed all but the closing process in the accounting cycle for the second year ended August 31, 2024. Dynamite’s trial balance follows:

Required:
Complete the financial statements, as follows:
a. Classified (multiple-step) income statement for the reporting year ended August 31, 2024. Include income tax expense, assuming a 25 percent tax rate. Use the following subtotals: Gross Profit, Total Operating Expenses, Income from Operations, Income before Income Taxes, Net Income, and EPS.
b. Classified balance sheet at the end of the reporting year, August 31, 2024. Include (1) income taxes for the current year in Income Taxes Payable and (2) dividends in Retained Earnings. Use the following captions (list each item under these captions).

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1 2 3 4 5 5.0 12 13 14 15 6 7 Office supplies 8 Company vehicles (delivery vans) 9 Accumulated depreciation, company vehicles 10 Equipment 11 Accumulated depreciation, equipment 16 17 18 19 20 21 22 23 24 25 26 Cash Accounts receivable 234 Accounts payable Income taxes payable Salaries payable DYNAMITE SALES Trial Balance At August 31, 2024 Long-term debt Common stock (par $1; 29,000) Additional paid-in capital Retained earnings (includes $4,200 in dividends declared and paid during the year) Sales revenue Cost of goods sold Operating expenses (detail omitted to conserve time) Depreciation expense Interest expense Income tax expense (not yet computed) Totals Debit 47,700 38,320 270 27,000 2,700 27,000 16,200 4,950 2,250 166.390 Credit 9,000 900 16,225 1,350 22,000 29,000 4,500 2,415 81,000 166,390