Use the adjusted trial balance and prepare a properly formatted multi-step income statement Adjusted trial balance 30- APR Debit Credit Cash 68,000 accounts receivable 12,000 Prepaid insurance 850 Prepaid Advertising 13,250 Office Supplies 1,475 Merchandise inventory 27,850 Equipment 250,000 Accumulated Depreciation - Equipment 100,000 Music Copyrights 60,000 Accounts Payable 10,300 Salaries Payable 63,018 notes payable 7,500 long-term notes payable 92,500 common stock 25,000 retained earnings 173,862 dividends 30,000 sales 265,065 sales discount 25,702 Sales returns and allowances 4,370 cost of goods sold 124,209 insurance expense (on office) 3,000 Advertising expense 1,900 office salaries expense 23,000 Office supplies expense 13,319 Office rent 24,000 Depreciation expense - office building 5,000 royalties (an expense) 26,000 travel expenses (sales related) 13,200 utilities expense 7,230 Interest expense 2,890 Totals $737,245 $737,245

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Use the adjusted trial balance and prepare a properly formatted multi-step income statement

  Adjusted trial balance  
  30- APR  
  Debit Credit
Cash 68,000  
accounts receivable 12,000  
Prepaid insurance 850  
Prepaid Advertising 13,250  
Office Supplies 1,475  
Merchandise inventory 27,850  
Equipment 250,000  
Accumulated Depreciation - Equipment   100,000
Music Copyrights 60,000  
Accounts Payable   10,300
Salaries Payable   63,018
notes payable   7,500
long-term notes payable   92,500
common stock   25,000
retained earnings   173,862
dividends 30,000  
sales   265,065
sales discount 25,702  
Sales returns and allowances 4,370  
cost of goods sold 124,209  
insurance expense (on office) 3,000  
Advertising expense 1,900  
office salaries expense 23,000  
Office supplies expense 13,319  
Office rent 24,000  
Depreciation expense - office building 5,000  
royalties (an expense) 26,000  
travel expenses (sales related) 13,200  
utilities expense 7,230  
Interest expense 2,890  
Totals $737,245 $737,245
     
     
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