prepare a Retained Earnings Statement

Accounts payable 6,300 Accounts receivable 37,100 Accumulated depreciation 23,800 Cash 5,600 Common Stock 22,200 Cost of goods sold 81,000 Depreciation expense 2,700 Dividends 48,000 Furniture 26,500 Interest expense 2,900 Interest payable 600 Interest revenue 2,000 Inventory 25,800 Note payable, long-term 35,000 Prepaid rent 1,000 Rent expense 7,700 Salary expense 72,700 Salary payable 2,000 Sales discounts 10,000 Sales returns and allowances 8,000 Sales revenue 244,000 Supplies 1,300 Supplies expense 2,200 Unearned sales revenue 2,400 Utilities expense 5,800 All accounts have normal balances.

B. From the information above prepare a Retained Earnings Statement.

C. From the information above prepare a classified Balance Sheet.

D. Briefly explain how the three financial statements are interrelated.

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