Following information relates to Manish Malhotra for the year ended on December 31,2019 : Required: Prepare a multiple-step income statement and a classified balance sheet based on the aforementioned trial balance.

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Chapter1: Financial Statements And Business Decisions
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Following information relates to Manish Malhotra for the year ended on December 31,2019 : Required: Prepare a multiple-step income statement and a classified balance sheet based on the aforementioned trial balance.
Following information relates to Manish Malhotra for the year ended on December 31,2019 :
Account Titles
Debit
Account Titles
Credit
Cash
$4
20,000.00 Accumulated Depreciation-Equipment
$100,000.00
Accounts Receivable
24
15,000.00 Notes Payable
$50,000.00
Inventory
24
30,000.00 Accounts Payable
$20,000.00
Prepaid Insurance
$4
50,000.00 Owner's Captial
$1,000,000.00
2$
1,200,000.00 Sales Revenue
$700,000.00
Equipment
Owner's Drawing
$4
20,000.00 Interest Revenue
$10,000.00
Sales Return and Allowances
$
5,000.00 Rent Revenue
$20,000.00
Sales Discounts
$4
2,000.00 gain on disposal of furniture
$5,000.00
Cost of Goods sold
2$
430,000.00
Freight out
Advertising Expense
Salaries and Wages Expense
3,000.00
$
15,000.00
12,000.00
Utilities Expense
10,000.00
Rent expense
$4
10,000.00
$4
Depreciation Expense
Insurance Expense
Interest Expense
50,000.00
2$
5,000.00
2$
3,000.00
Loss on Disposal of Plant assets $
5,000.00
wastage due to pandemic
20,000
Total
1,905,000
1,905,000
Required: Prepare a multiple-step income statement and a classified balance sheet based on the
aforementioned trial balance.
Transcribed Image Text:Following information relates to Manish Malhotra for the year ended on December 31,2019 : Account Titles Debit Account Titles Credit Cash $4 20,000.00 Accumulated Depreciation-Equipment $100,000.00 Accounts Receivable 24 15,000.00 Notes Payable $50,000.00 Inventory 24 30,000.00 Accounts Payable $20,000.00 Prepaid Insurance $4 50,000.00 Owner's Captial $1,000,000.00 2$ 1,200,000.00 Sales Revenue $700,000.00 Equipment Owner's Drawing $4 20,000.00 Interest Revenue $10,000.00 Sales Return and Allowances $ 5,000.00 Rent Revenue $20,000.00 Sales Discounts $4 2,000.00 gain on disposal of furniture $5,000.00 Cost of Goods sold 2$ 430,000.00 Freight out Advertising Expense Salaries and Wages Expense 3,000.00 $ 15,000.00 12,000.00 Utilities Expense 10,000.00 Rent expense $4 10,000.00 $4 Depreciation Expense Insurance Expense Interest Expense 50,000.00 2$ 5,000.00 2$ 3,000.00 Loss on Disposal of Plant assets $ 5,000.00 wastage due to pandemic 20,000 Total 1,905,000 1,905,000 Required: Prepare a multiple-step income statement and a classified balance sheet based on the aforementioned trial balance.
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