The Grey Sky Company, which has 25,000 shares of common stock outstanding, reports the following ledger balances as of December 31 after adjustments…

The Grey Sky Company, which has 25,000 shares of common stock outstanding, reports the following ledger balances as of December 31 after adjustments….

I3-2:The Grey Sky Company, which has 25,000 shares of common stock outstanding, reports the following ledger balances as of December 31 after adjustments and before closing entries.Accounts Receivable85,000Inventory150,000Land900,000Accounts Payable90,000Common Stock500,000Retained Earnings (beginning of year)238,000Sales1,400,000Rent revenue 28,000Cost of goods sold600,000Selling expenses200,000Administrative expenses170,000Loss on discontinued operation50,000Extraordinary gain67,000Extraordinary loss40,000Unrealized holding gain on available-for-sale securities12,000Cash dividends paid100,000Income tax expense applicable to:Income from continuing operations131,000Loss on discontinued operations18,000Extraordinary gain23,000Extraordinary loss8,000Instructions:(1)Prepare a single-step income statement for the year.(2)Prepare a retained earnings statement for the year.(3)Use the second income statement format to report comprehensive income.

The Grey Sky Company, which has 25,000 shares of common stock outstanding, reports the following ledger balances as of December 31 after adjustments…

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