Horton Company has the following ledger accounts and adjusted balances as of December $31,$

$2023.$ All accounts have normal balances. Horton$$s income tax rate is $20\%.$ Horton has

$300,000$ shares of $$10$ par Common Stock authorized and $85,000$ shares of Common Stock

outstanding.

Accounts Payable.................................. $87,750$

Accounts Receivable.............................. $607,100$

Accumulated Depreciation$-$Building............ $168,750$

Accumulated Depreciation$-$Equipment.......... $140,000$

Administrative Expenses......................... $150,000$

Allowance for Doubtful Accounts............... $67,500$

Bonds Payable...................................... $600,000$

Building...........................................$\mathrm{.}1,687,500$

Cash................................................. $87,750$

Common Stock.................................... $900,000$

Cost of Goods Sold..............................$\mathrm{.}1,282,500$

Dividends.......................................... $75,000$

Equipment.......................................... $652,500$

Income from Operations of Division Y$........135,000$

$($Division Y is a component of Horton Company$)$

Interest Revenue................................... $90,000$

Inventory............................................$\mathrm{.}945,000$

Land $($held for future use$).........................675,000$

Land $($used for building$)..........................371,250$

Loss from Sale of Division Y$....................270,000$

$($Division Y is a component of Horton Company$)$

Loss on Sale of Land............................... $33,750$

Mortgage Payable $.................................813,550*$

Paid$-$In Capital in Excess of Par................. $594,000$

Premium on Bonds Payable..................... $15,000$

Prepaid Insurance.................................. $33,750**$

Retained Earnings, January $1,2023............843,750$

Sales Discounts..................................... $43,500$

Sales Returns and Allowances..................$\mathrm{.}112,500$

Sales Revenue...................................$\mathrm{.}3,453,750$

Selling Expenses.................................. $416,750$

Trademark.........................................$\mathrm{.}101,250$

Treasury Stock..................................... $90,000$

$*$$$50,000$ of the principal comes due in $2024.$

$**$Two years insurance paid in advance.

Instructions:

Use this information to prepare a multiple$-$step income statement, a retained earnings statement,

and a classified balance sheet.