(Solution) - The following information is taken from accounting records of A -(2025 Original AI-Free Solution)

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The following information is taken from accounting records of ABC Company as of the tiscal year ended December 31, 2007:
Net sales $900,000
Interest revenue 2,000
Dividend income 12,000
Cost of goods sold 600,000
Wages and salaries 100,000
Rent expense 30,000
Electricity 4200
Telephone 1,800
Advertising 6,000
Interest expense 16,000
Discontinued operation:
Loss on operation of discontinued operation 8,000
Gain on disposal of discontinued operation 3,000
Extraordinary loss 7,500
Cash 68,250
Marketable securities 1,000
Accounts receivable 104,640
Allowance for doubtful account 5,000
Inventory 174,020
Prepaid expenses 1,800
Long-term investments in bonds 34,000
Long-term investments in stock 50,000
Land 96,350
Building 128,750
Accumulated depreciation- building 29,000
Equipment 85,000
Accumulated depreciation- equipment 30,000
Intangible asset- copyright 2400
Intangible- assets-patent 10,000
Accounts payable 80,710
Short-term notes payable 5,000 Long- term notes payable 67,230
Long-term bonds payable 60,000
Discount on Bonds Payable 10,000
Beginnings retained earnings balance 195,640
Preferred stock 50,000
Additional paid-in capital- preferred 2000
ommon stock (10,000 shares Outstanding -16,000
dditional paid-in capital- common 130,180
Additional information:
1. Company declared and paid $5,000 dividends to preferred stockholders Juring the year.
2. Income tax rate 30%
Required:
A. Prepare an income statement for the company using a Multiple-step tormat in a good form ( 18 points).
B. Prepare a statement of retained earnings for the company in a good form (4 points).
C. Prepare a classified balance sheet in a good torm for the company as of the end accounting period ( 18 points).