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Financial Statement Preparation:
A. Prepare a multiple-step income statement for Malone Corporation in proper income statement format. Use the worksheet labeled "Income Statement".
B. Prepare a classified balance sheet for Malone Corporation using the account format. Use the worksheet labeled "Balance Sheet".
Malone Corporation's capital structure consists of 100,000 shares of common stock issued and outstanding. At December 31, 2019, an analysis of the
accounts and revealed the following information: Income tax rate 30%
	Sales revenue	1,300,000		Depreciation expense - selling	7,000
	Sales discounts	21,000		Loss on sale of investments	2,500
	Accrued interest payable	5,000		Sales returns and allowances	74,000
	Interest Revenue	3,300		Common stock	300,000
	Selling expenses	23,000		Dividends on preferred stock	2,500
	Cash	63,000		Allowance for doubtful accounts	6,000
	Accounts receivable	107,000		Supplies	28,120
	Gain on disposal of business operation before tax	52,700		Depreciation expense - administrative	12,000
	Accumulated depreciation	205,000		Unearned revenue	25,000
	Bad debt expense	18,000		Amortization expense on patents	3,000
	Cost of goods sold	406,000		Depreciation expense error (too small) from 2017	8,000
	Inventory, December 31	136,000		Prepaid insurance	40,000
	Preferred stock	50,000		Income tax payable	47,000
	Patents	56,500		Interest expense	18,000
	Retained earnings, January 1	180,000		General and administrative expenses	55,000
	Write-down of inventory to lower-of-cost-or-market	3,100		Dividends declared on common stock	36,000
	Notes payable, due in 5 years	200,000		Land	280,000
	Machinery and equipment	475,000		Insurance expense	66,000
	Dividend revenue	5,200		Sales salaries expense	230,000
	Accounts payable	78,000		Administrative salaries expense	153,000
	Note Receivable due in 5 years	55,000

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