Part III Problem solving (10 points *6=60 points) 1. Constructing Financial Statements from Account Data Barth Company reports the following year-end account balances at December 31, 2011. Prepare the 2011 income statement and the balance sheet as of December 31, 2011. In the income statement and the balance sheet, please enter the account names as well as the balances to the correct places, and calculate the required totals or subtotals. Accounts payable $ 4,000 Inventory $9,000 Accounts receivable 7,500 Land 20.000 Bonds payable, long-term 50,000 Goodwill 2,000 Buildings 37,750 Retained earnings 15,000 Cash 12,000 Sales revenue 100.000 Common stock 37,500 Supplies inventory 750 Cost of goods sold 45,000 Supplies expense 1,500 Equipment 17,500 Wages expense 10,000 Barth Company Income Statement For Year Ended December 31, 2011 Expenses: $ Total expenses Net Income $ 2. Classification of financial statement items Please indicate whether the following items are reported on the Income statement (I) or Balance sheet (B) Income statement (I) or Balance sheet (B) Machinery & Equipment Wages expense Inventories Sale revenue Common stock Accounts receivables Interest payable Long-term debt Cost of goods sold Unearned revenue