Braun Company has the following ledger accounts

Preparation of Financial Statements
Braun Company has the following ledger accounts and adjusted balances as of December 31,
2016. All accounts have normal balances. Braun’s income tax rate is 40%. Braun has 300,000
shares of Common Stock authorized and 100,000 shares of Common Stock issued and
outstanding.
Accounts Payable……………………………. 13,000
Accounts Receivable………………………… 90,000
Accumulated Depreciation-Building………… 25,000
Administrative Expenses……………………. 20,000
Allowance for Doubtful Accounts…………… 10,000
Bonds Payable (Mature 2020)………………. 125,000
Building……………………………………… 200,000
Cash…………………………………………. 13,000
Common Stock……………………………… 200,000
Cost of Goods Sold…………………………. 190,000
Dividends…………………………………… 10,000
Income from Operations of Division X…….. 20,000
(Division X is a component of Braun Company)
Interest Revenue…………………………….. 10,000
Inventory…………………………………….. 140,000
Land…………………………………………. 100,000
Loss from Earthquake……………………….. 35,000
(unusual in nature and infrequent in occurrence)
Loss from Sale of Division X........................... 40,000
(Division X is a component of Braun Company)
Loss on Sale of Land……………………….. .. 5,000
Patent………………………………………… 15,000
Prepaid Rent…………………………………. 5,000*
Retained Earnings, January 1, 2016…………125,000
Sales Revenue……………………………….450,000
Selling Expenses……………………………. 65,000
*Two years rent paid in advance for offsite document storage.
Instructions:
Use this information to prepare a multiple-step income statement and a classified balance sheet.