You are provided with the following information for Merrell Enterprises, effective as of its April 30, 2012, year-end.
Accounts payable ........... $ 834
Accounts receivable ........... 810
Accumulated depreciation-equipment .... 670
Cash ................ 1,270
Common stock ............ 900
Cost of goods sold ......... 1,060
Depreciation expense ........ $ 335
Dividends ............. 325
Equipment ............ 2,420
Income tax expense .......... 165
Income taxes payable ......... 135
Insurance expense .......... 210
Interest expense .......... 400
Inventory .............. 967
Land ............... 3,100
Mortgage payable .......... 3,500
Notes payable ............ 61
Prepaid insurance ........... 60
Retained earnings (beginning) .... 1,600
Sales revenue .......... 5,100
Short-term investments ....... 1,200
Salaries and wages expense ..... 700
Salaries and wages payable ...... 222
Instructions
(a) Prepare an income statement and a retained earnings statement for Merrell
Enterprises for the year ended April 30, 2012.
(b) Prepare a classified balance sheet for Merrell Enterprises as of April 30, 2012.