Little Lads and Ladies Ltd. sells children’s clothing. At the end of December 2020, it had the following adjusted account balances, which are listed in random order:

Required

a. Identify the statement of income accounts and calculate the net income (or loss) for the year.

b. Prepare the closing entries.

c. Determine the amount of retained earnings at the end of 2020.

d. Prepare a classified statement of financial position as at December 31, 2020. The full balance of the bank loan payable is due on June 30, 2022.

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$ 3,000 Utilities Expense Cash 600 Wages Payable 500 Dividends Declared 1,200 Supplies Expense 4,200 Depreciation Expense 500 Equipment 23,000 Common Shares 20,000 Telephone Expense Wages Expense 25,000 200 Prepaid Rent Interest Expense 400 300 Cost of Goods Sold 32,000 Accumulated Depreciation, Equipment 1,500 Sales Revenue 66,450 Retained Earnings 17,600 Accounts Receivable 10,000 Inventory 8,000 Repairs and Maintenance Expenses Rent Expense 4,800 400 Bank Loan Payable 3,800 Supplies 800 Interest Payable Advertising Expense 750 300 Accounts Payable 5,000