Income Statement, Statement of Owner's Equity, and Balance Sheet1. Prepare a multiple-step income statement.2. Prepare a statement of owner's equity3. Prepare a balance sheet.Paulson's Pet Store completed the work sheet below for the year ended December 31, 20--. Owner's equity as of January 1, 20--, was $21,900. The current portion of Mortgage Payable is $500.Paulson's Pet StoreWork SheetFor Year Ended December 31, 20 -- TRIAL BALANCEADJUSTMENTSADJUSTED TRIAL BALANCEINCOME STATEMENTBALANCE SHEETACCOUNT TITLEDEBITCREDITDEBITCREDITDEBITCREDITDEBITCREDITDEBITCREDITCash15,860 15,860 15,860 Accounts Receivable2,340 2,340 2,340 Merchandise Inventory15,000 (b) 16,500(a) 15,00016,500 16,500 Supplies800 (c) 200600 600 Prepaid Insurance600 (d) 150450 450 Equipment5,000 5,000 5,000 Accum. Depr.—Equipment 450 (e) 450 900 900Accounts Payable 4,890 4,890 4,890Wages Payable (f) 300 300 300Sales Tax Payable 860 860 860Mortgage Payable 4,000 4,000 4,000B. Paulson, Capital 23,900 23,900 23,900B. Paulson, Drawing1,200 1,200 1,200 Income Summary (a) 15,000(b) 16,50015,00016,50015,00016,500 Sales 71,510 71,510 71,510 Sales Returns and Allowances1,340 1,340 1,340 Purchases40,660 40,660 40,660 Purchases Returns and Allowances 1,020 1,020 1,020 Purchases Discounts 800 800 800 Freight-In400 400 400 Wages Expense22,300 (f) 300 22,600 22,600 Advertising Expense300 300 300 Supplies Expense (c) 200 200 200 Phone Expense684 684 684 Utilities Expense716 716 716 Insurance Expense (d) 150 150 150 Depr. Expense—Equipment (e) 450 450 450 Miscellaneous Expense150 150 150 Interest Expense80 80 80 107,430107,43032,60032,600124,680124,68082,73089,83041,95034,850Net Income 7,100 7,100 89,83089,83041,95041,950 ### Financial Statement TemplateThis template provides a structured outline for organizing the financial data of a company, focusing on assets, liabilities, and owner's equity. It is typically used for generating a balance sheet. Here's a detailed breakdown:#### Total Assets1. **Total Current Assets**: - At the top is a line for entering the sum of all current assets in dollar terms.2. **Property, Plant, and Equipment**: - There are lines provided for detailing various components of property, plant, and equipment. Each line can have a monetary value entered next to it.3. **Total Assets**: - A section to calculate the cumulative value of all assets, with a dedicated space for the total dollar amount.#### Liabilities1. **Current Liabilities**: - This section includes lines for entering different current liabilities, with space for corresponding amounts. 2. **Total Current Liabilities**: - A space to record the total monetary value of all current liabilities.3. **Long-term Liabilities**: - There are lines to input different long-term liabilities and corresponding financial figures.4. **Total Liabilities**: - This area is designated for summarizing the total liabilities, both current and long-term, with a space to note the total dollar amount.#### Owner’s Equity- This section is separated from liabilities and has a space where owners can input the monetary value of their equity in the business.#### Total Liabilities and Owner's Equity- The final total combines all liabilities and owner's equity, providing a comprehensive financial overview of the company.This structured template is essential for assessing the financial health and computing the balance sheet of an organization. **2. Prepare a Statement of Owner's Equity***Paulson's Pet Store* *Statement of Owner's Equity* *For Year Ended December 31, 20--*- (Line 1) ................................................. $ [Amount]- (Line 2) ................................................. $ [Amount]**Total Investment** .......................................................... $ [Amount](Line 3) ................................................................ $ [Amount](Line 4) ................................................................ $ [Amount](Line 5) ................................................................ $ [Amount]---**3. Prepare a Balance Sheet***Paulson's Pet Store* *Balance Sheet* *December 31, 20--***Assets**- **Current Assets:** - (Line 1) ................................................. $ [Amount] - (Line 2) ................................................. $ [Amount] - (Line 3) ................................................. $ [Amount] - (Line 4) ................................................. $ [Amount] - (Line 5) ................................................. $ [Amount]---**Note:**- Each line contains fields for data entry related to owner’s equity and balance sheet items at Paulson’s Pet Store for the specified period.- Specific investment and asset items will need to be identified and entered in the respective blank spaces.- This document assists in organizing financial information for clear presentation of a business’s financial standing as of the year end.

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Description: Income Statement, Statement of Owner's Equity, and Balance Sheet1. Prepare a multiple-step income statement.2. Prepare a statement of owner's equity3. Prepare a balance sheet.Paulson's Pet Store completed the work sheet below for the year ended De

1.Income Statement: *All values are in Dollar($).

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Income Statement, Statement of Owner's Equity, and Balance Sheet

1. Prepare a multiple-step income statement.

2. Prepare a statement of owner's equity

3. Prepare a balance sheet.

Paulson's Pet Store completed the work sheet below for the year ended December 31, 20--. Owner's equity as of January 1, 20--, was $21,900. The current portion of Mortgage Payable is $500.

Paulson's Pet Store Work Sheet For Year Ended December 31, 20 --
	TRIAL BALANCE	ADJUSTMENTS	ADJUSTED TRIAL BALANCE	INCOME STATEMENT	BALANCE SHEET
ACCOUNT TITLE	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
Cash	15,860				15,860				15,860
Accounts Receivable	2,340				2,340				2,340
Merchandise Inventory	15,000		(b) 16,500	(a) 15,000	16,500				16,500
Supplies	800			(c) 200	600				600
Prepaid Insurance	600			(d) 150	450				450
Equipment	5,000				5,000				5,000
Accum. Depr.—Equipment		450		(e) 450		900				900
Accounts Payable		4,890				4,890				4,890
Wages Payable				(f) 300		300				300
Sales Tax Payable		860				860				860
Mortgage Payable		4,000				4,000				4,000
B. Paulson, Capital		23,900				23,900				23,900
B. Paulson, Drawing	1,200				1,200				1,200
Income Summary			(a) 15,000	(b) 16,500	15,000	16,500	15,000	16,500
Sales		71,510				71,510		71,510
Sales Returns and Allowances	1,340				1,340		1,340
Purchases	40,660				40,660		40,660
Purchases Returns and Allowances		1,020				1,020		1,020
Purchases Discounts		800				800		800
Freight-In	400				400		400
Wages Expense	22,300		(f) 300		22,600		22,600
Advertising Expense	300				300		300
Supplies Expense			(c) 200		200		200
Phone Expense	684				684		684
Utilities Expense	716				716		716
Insurance Expense			(d) 150		150		150
Depr. Expense—Equipment			(e) 450		450		450
Miscellaneous Expense	150				150		150
Interest Expense	80				80		80
	107,430	107,430	32,600	32,600	124,680	124,680	82,730	89,830	41,950	34,850
Net Income							7,100			7,100
							89,830	89,830	41,950	41,950

### Financial Statement Template

This template provides a structured outline for organizing the financial data of a company, focusing on assets, liabilities, and owner's equity. It is typically used for generating a balance sheet. Here's a detailed breakdown:

#### Total Assets

1. **Total Current Assets**:
- At the top is a line for entering the sum of all current assets in dollar terms.

2. **Property, Plant, and Equipment**:
- There are lines provided for detailing various components of property, plant, and equipment. Each line can have a monetary value entered next to it.

3. **Total Assets**:
- A section to calculate the cumulative value of all assets, with a dedicated space for the total dollar amount.

#### Liabilities

1. **Current Liabilities**:
- This section includes lines for entering different current liabilities, with space for corresponding amounts.

2. **Total Current Liabilities**:
- A space to record the total monetary value of all current liabilities.

3. **Long-term Liabilities**:
- There are lines to input different long-term liabilities and corresponding financial figures.

4. **Total Liabilities**:
- This area is designated for summarizing the total liabilities, both current and long-term, with a space to note the total dollar amount.

#### Owner’s Equity

- This section is separated from liabilities and has a space where owners can input the monetary value of their equity in the business.

#### Total Liabilities and Owner's Equity

- The final total combines all liabilities and owner's equity, providing a comprehensive financial overview of the company.

This structured template is essential for assessing the financial health and computing the balance sheet of an organization.

**2. Prepare a Statement of Owner's Equity**

*Paulson's Pet Store*
*Statement of Owner's Equity*
*For Year Ended December 31, 20--*

- (Line 1) ................................................. $ [Amount]
- (Line 2) ................................................. $ [Amount]

**Total Investment**
.......................................................... $ [Amount]

(Line 3) ................................................................ $ [Amount]
(Line 4) ................................................................ $ [Amount]

(Line 5) ................................................................ $ [Amount]

---

**3. Prepare a Balance Sheet**

*Paulson's Pet Store*
*Balance Sheet*
*December 31, 20--*

**Assets**

- **Current Assets:**
- (Line 1) ................................................. $ [Amount]
- (Line 2) ................................................. $ [Amount]
- (Line 3) ................................................. $ [Amount]
- (Line 4) ................................................. $ [Amount]
- (Line 5) ................................................. $ [Amount]

---

**Note:**

- Each line contains fields for data entry related to owner’s equity and balance sheet items at Paulson’s Pet Store for the specified period.
- Specific investment and asset items will need to be identified and entered in the respective blank spaces.
- This document assists in organizing financial information for clear presentation of a business’s financial standing as of the year end.

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