Question 3 (20 marks)

Using the following information provided below prepare a statement of retained earnings of Nanaimo Hotels Inc. as of November 30, 2020, and a classified balance sheet for the year ending November 30, 2020.

Cash	$6,000	Accumulated depreciation, Furniture, and equipment	6,000
Short-term investments	10,000	Notes payable (short-term)	20,000
Food inventory	12,000	Accounts payable	8,000
Accounts receivables	4,000	Allowance for doubtful accounts	2,000
Beverage inventory	7,000	Customers deposits	1,000
Prepaid expenses	2,000	Common shares	23,000
Furniture and equipment	40,000	Sales	120,000
China, glassware, and uniforms	2,000	General and admin. Expenses	56,000
Franchises	6,000	Interest expense	2,000
Long-term receivables	8,000	Departmental expenses	40,000
Retained Earnings (2019)	20,000	Income tax expense	6,600

Note: The company declared $5,000 dividends for 2020.