2: This question is meant to determine whether you understand which accounts appear on the income statement and on the balance sheet. It also will determine whether you understand the various sections that typically appear on an income statement and balance sheet. Given the accounts and their respective balances that appear below, prepare in good form a multi-step income statement for the year ended December 31, 1999 and a classified balance sheet at December 31, 1999. All account balances are as of December 31, 1999 except for Retained Earnings, whose balance is as of January 1, 1999. Accounts Payable 39,000 Accounts Receivable 61,000 Accumulated Depreciation, Property, Plant & Equipment 42,000 Additional Paid-in Capital 65,000 Amortization Expense 2,000 Beginning Retained Earnings 61,000 Cash 23,000 Common Stock 10,000 Cost of Goods Sold 670,000 Depreciation Expense, Property, Plant & Equipment 7,000 Dividends 6,000 Income Tax Expense 13,000 Income Taxes Payable 3,000 Interest Expense 5,000 Interest Payable 1,000 Inventory 52,000 Long-Term Notes Payable 50,000 Patent 18,000 Prepaid Rent 6,000 Property, Plant & Equipment 140,000 Rent Expense 36,000 Sales 935,000 Unearned Revenues 9,000 Utility Expense 4,000 Wage Expense 180,000 Wages Payable 8,000