Your assistant prepared the following adjusted trial balance data for Commerce Company on December 31, 2011. The accounts are arranged in alphabetical order.

Required:
a. Calculate the net income for the year ended December 31, 2011.
b. Determine the retained earnings balance as at the end of the year.
c. Prepare a classified statement of financial position as of December 31, 2011.

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Accounts payable Accounts receivable Accumulated depreciation Building Cash Cost of goods sold Depreciation expense Dividends declared Dividends payable Expired insurance Income tax payable Income tax provision Interest on mortgage and note Interest payable Inventory Long-term investment in Key $70,000 48,000 15,000 13,000 500 31,500 60,000 3,000 179,800 27,000 93,100 85,000 800 2,200 1,200 2,400 $36,000 Land 67,000 Mortgage payable 20,000 72,000 Other expenses 24.000 Prepaid insurance 110,000 Retained earnings Note payable (short-term) 4,500 12,400 4,000 1,400 2,000 8,000 1,700 Salaries and wages Salaries and wages owed Sales Selling expenses Service fees earned Share capital Supplies on hand 300 Supplies used 30,000 Unearned revenue Utilities expense Company shares