Income statement: This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time. Statement of retained earnings : This is an equity statement which shows the changes in the stockholders’ equity over a period of time. Classified balance sheet: This is the financial statement of a company which shows the grouping of similar assets and liabilities under subheadings. To prepare: The income statement, statement of retained earnings and classified balance sheet of W Company.

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Chapter 3, Problem 3.5E

To determine

Income statement:

This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time.

Statement of retained earnings:

This is an equity statement which shows the changes in the stockholders’ equity over a period of time.

Classified balance sheet:

This is the financial statement of a company which shows the grouping of similar assets and liabilities under subheadings.

To prepare: The income statement, statement of retained earnings and classified balance sheet of W Company.

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