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On October 31, 2016, the balances of the accounts appearing in the ledger of Prestige Furnishings Company, a furniture wholesaler, are as follows:
Accumulated Depreciation-Building $ 750,000
Administrative Expenses 540,000
Building 2,500,000
Cash 175,000
Common Stock 300,000
Cost of Merch Sold 3,800,000
Dividends 175,000
Interest Expense 10,000
Merchandise Inventory 980,000
Notes Payable 250,000
Office Supplies 20,000
Retained Earnings 1,287,000
Salaries Payable 8,000
Sales 6,410,000
Selling Expenses 715,000
Store supplies 90,000
Assume $50,000 of the Notes Payable is due in the next 12 months.
Prepare a multi-step Income Statement, a Statement of Retained Earnings, and a Classified Balance Sheet.
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