QUESTION 1

1. Using the account list below, create the Multiple-Step Income Statement, Statement of Retained Earnings and Classified Balance Sheet for Tennis Manufacturing, Inc. for December 31, 2021. Don't forget to include the correct heading for each financial statement.

   **Notethe only selling expenses are SALARIES EXPENSE. The rest of the expenses are Administrative Expenses. Each account is only used once per financial statement. All accounts are used.

   HINT: Total Assets = 660,500

   Building	300,000
   Cash Dividends	20,000
   Cost of Goods Sold	150,000
   Notes Payable-Long Term	34,500
   Depreciation Expense	24,000
   Accounts Receivable	57,000
   Office Supplies Expense	6,600
   Accounts Payable	41,000
   Sales Revenue	750,000
   Salaries Expense	7,500
   Cash	303,100
   Interest Payable	2,300
   Rent Expense	36,000
   Acc. Depreciation-Building	24,000
   Utilities Expense	5,200
   Beg. Retained Earnings	50,000
   Prepaid Insurance	2,400
   Income Tax Expense	3,800
   Salaries Payable	3,500
   Interest Expense	1,800
   APIC-Common Stock	10,400
   Supplies	10,000
   Common Stock	14,000
   Unearned Revenue	9,700
   Prepaid Rent	12,000