RECOMMENDED!!Browning Company has the following ledger accounts

  

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 statementb) retained earnings statementc) classified balance sheet.