Browning Company has the following ledger accounts and adjusted balances as of December 31, 2017. All accounts have normal balances. Browning's income tax rate is 40%. Browning has 300,000 shares of Common Stock authorized and 100,000 shares of Common Stock issued and outstanding. 

 

        Accounts Payable..................................  26,000

       Accounts Receivable.............................. 180,000

        Accumulated Depreciation-Building............  50,000

        Administrative Expenses.........................   40,000

        Allowance for Doubtful Accounts...............  20,000

        Mortgage Payable ................................. 250,000*

        Building............................................. 500,000

        Cash.................................................   26,000

        Common Stock.................................... 300,000

        Cost of Goods Sold............................... 380,000

        Dividends..........................................   20,000

        Income from Operations of Division X........   40,000

        (Division X is a component of Browning Company)

        Interest Revenue...................................   20,000

      Inventory.............................................280,000

        Land (held for future use)......................... 200,000

        Loss from Sale of Division X........................... 80,000

        (Division X is a component of Browning Company)

        Loss on Sale of Investments..................... .. 10,000

        Paid-In Capital in Excess of Par..................116,000

        Patent................................................  30,000

        Prepaid Insurance.................................. 10,000**

        Retained Earnings, January 1, 2017............ 250,000

        Sales Discounts..................................... 20,000

        Sales Revenue......................................990,000

       Selling Expenses.................................. 130,000

 

 *$25,000 of the principal comes due in 2018.

**Two years insurance paid in advance.

 

Please solve for: 

a) multiple-step income statement

b) retained earnings statement

c) classified balance sheet.