Question

From the adjusted trial balance for the Worker Products Company, prepare a multiple-step income statement in good form.


WORKER PRODUCTS COMPANY Adjusted Trial Balance December 31
Debit Credit
Cash $ 9,400
Accounts receivable 25,000
Merchandise inventory 36,000
Office supplies 900
Store equipment 75,000
Accumulated depreciation store equipment $ 22,000
Office equipment 60,000
Accumulated depreciation office equipment 15,000
Accounts payable 42,000
Notes payable 10,000
Common stock 40,000
Retained earnings 70,700
Dividends 48,000
Sales 325,000
Sales discounts 6,000
Sales returns and allowances 16,500
Cost of goods sold 195,000
Sales salaries expense 32,500
Depreciation expense store equipment 11,000
Depreciation expense office equipment 7,500
Office supplies expense 1,300
Interest expense 600
Totals $524,700 $524,700

Answer

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