E3-34B. (Learning Objective 4: Construct the financial statements) The adjusted trial balance of Sabrina, Inc., follows:

1. Prepare Sabrinas single-step income statement and statement of retained earnings for the year ended December 31, 2018, and its balance sheet on that date.

LO E3-34B. (Learning Objective 4: Construct the financial statements) The adjusted trial balance of Sabrina, Inc., follows: A1 Sabrina, Inc. Adjusted Trial Balance December 31, 2018 2 (Amounts in thousands) 3 Account 4 Cash 5 Accounts receivable 6 Inventories 7 Prepaid expenses 8 Property plant, and equipment 9 Accumulated depreciation-property, 10 Other assets 11 Accounts payable 12 Income tax payable 13 Other liabilities 14 Common stock 15 Retained earnings (beginning December 31, 2017 16 Dividend 17 Sales revenue 18 Cost of goods sold 19 Selling, administrative, and general expenses 20 Income tax expense 21 Total Debit Credit 4,300 1300 2400 1800 16,700 plant, and equipment 2300 9400 7,700 600 2200 14,600 5900 1200 42 500 25,600 10,600 500