Selected accounts of Olsevik Janitorial Supplies, at July 31, 2023, are listed in alphabetical order below. For simplicity, all operating expenses are summarized in the Selling Expenses account and the General Expenses account. Olsevik Janitorial Supplies uses the periodic inventory system.

Required

1. Prepare the business’s multi-step income statement for the year ended July 31, 2023.

2. Prepare Olsevik Janitorial Supplies’ statement of owner’s equity at July 31, 2023.

3. Prepare Olsevik Janitorial Supplies’ classified balance sheet in report format at July 31, 2023.

4. Bev Olsevik, owner of the company, strives to earn a gross margin percentage of at least 28.5 percent and a net income percentage of 15.3 percent (Net income percentage = Net income , Net sales revenue). Did Olsevik Janitorial Supplies achieve these goals? Show your calculations. Round answers to one decimal place.

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Accounts Payable...... Accounts Receivable.. Accumulated Amortization- Equipment...... B. Olsevik, Capital.. B. Olsevik, Withdrawals... Cash............ Equipment.... General Expenses. Interest Expense. Interest Payable Interest Revenue.. $ 102,000 117,000 Inventory: July 31, 2022.. Inventory: July 31, 2023.. Notes Payable, Long-Term....... 61,500 Purchases..... 863,400 Salaries Payable. 42,300 Sales Discounts. 46,200 Sales Returns and Allowances... 484,000 284,250 Sales Revenue. 10,200 Selling Expenses.. 8,800 Supplies..... 1,500 Unearned Sales Revenue........... $ 730,000 525,000 500,000 1,361,000 23,000 25,000 52,800 1,891,200 317,250 16,200 34,800