Question

prepare multi step income statement, statement of owners equity, and classified balanced sheet

Terrific Review Company Line 2 of the heading Line 3 of the heading $ 390 $ 22,400 8,230 1,500 448 58,049 6,000 1,200 67,050 56,040 5,131 2,000 85 Accounts payable Accounts receivable Accumulated depreciation - Advertising expense Allowance for doubtful accounts B. Smart, Capital B. Smart, Withdrawals - Bad debt expense Cash Cost of goods sold - Depreciation expense - Insurance expense - Interest expense Interest payable, due March 31, 2021 Merchandise inventory - Mileage expense Notes payable, due March 31, 2021 Prepaid insurance Prepaid rent - Rent expense - Repair expense Sales Sales returns and allowances Supplies - Supplies expense Unearned revenue Vehicles Wages expense Wages payable 4,670 5,872 25,000 1,600 1,077 12,924 495 143,400 9,000 1,540 220 300 35,920 1,303 $ 236,027 125 $ 236,027

Answer 1

Multi-step income Statement:

Income Statement
Sales		$143,400
Sales returns and allowances		($9,000)
Net Sales		$134,400
Cost of goods sold		($56,040)
Gross profit		$78,360
Operating expenses:
Advertising expense	$1,500
Bad debt expense	$1,200
Depreciation expense	$5,131
Insurance expense	$2,000
Mileage expense	$5,872
Rent expense	$12,924
Repair expense	$495
Supplies expense	$220
Wages expense	$1,303
Total operating expenses		$30,645
Operating income		$47,715
Non-operating income(expense):
Interest expense	($85)
Total non-operating income(expense)		($85)
Net income		$47,630

Statement of Owner's equity :

Statement of owner's equity
B.Smart, Capital Beginning	$58,049
Add:Net income	$47,630
Balance	$105,679
(Less): B.Smart, Withdrawals	($6,000)
B.Smart, Capital Ending	$99,679

Balance sheet:

Balance Sheet
Assets			Liabilities and Owner's equity
Current assets:			Current liabilities:
Cash		$67,050	Accounts payable	$390
Merchandise inventory		$4,670	Interest payable	$85
Supplies		$1,540	Notes payable	$25,000
Prepaid insurance		$1,600	Wages payable	$125
Prepaid rent		$1,077	Unearned revenue	$300
Accounts receivable	$22,400		Total liabilities	$25,900
(Less):Allowance for doubtful accounts	($448)	$21,952	Owner's equity:
Total current assets		$97,889	B.Smart, Capital	$99,679
Property,plant,and equipment:
Vehicles	$35,920
Accumulated depreciation	($8,230)
Total property,plant, and equipment		$27,690
Total Assets		$125,579	Total liabilities and Owner's equity	$125,579