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Penn Company has the following ledger accounts and adjusted balances as of December 31, 2019. All accounts have normal balances. Penns income tax rate is 20%. Penn has 300,000 shares of $5 Common Stock authorized and 90,000 shares outstanding.

Accounts Payable. 46,000

Accounts Receivable 324,000

Accumulated Depreciation-Building 90,000

Accumulated Depreciation-Equipment. 72,000

Administrative Expenses. 70,000

Allowance for Doubtful Accounts 36,000

Bonds Payable.. 300,000

Building 900,000

Cash. 45,200

Common Stock 500,000

Cost of Goods Sold. 684,000

Dividends 24,000

Equipment 348,000

Income from Operations of Division X.. 72,000

(Division X is a component of Penn Company)

Interest Revenue.. 48,000

Inventory...504,000

Land (held for future use).... 360,000

Land (used for building).. 198,000

Loss from Sale of Division X...........................144,000

(Division X is a component of Penn Company)

Loss on Sale of Investments... .. 18,000

Mortgage Payable ... 450,000*

Paid-In Capital in Excess of Par...248,000

Premium on Bonds Payable.. 12,000

Prepaid Insurance. 18,000**

Retained Earnings, January 1, 2019 530,000

Sales Discounts. 36,000

Sales Returns and Allowances.. 60,000

Sales Revenue...1,842,000

Selling Expenses. 236,000

Trademark 54,000

Treasury Stock. 80,000

*$25,000 of the principal comes due in 2020.

**Two years insurance paid in advance.

Use this information to prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet.

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