1) Create a Multi-step Income Statement for the Month of June. Assume a 35% Tax rate

Date Entry Post Ref. Credit Debit 70,000 101 307 70,000 128 12,240 101 12,240 25,000 25,000 155 153 101 12,000 12,500 24,500 131 3,600 101 3,600 June Cash Common Stock (to record investment) Prepaid Insurance Cash (to record prepayment of insurance) Cash Accounts Payable (to record loan) Rafts Trucks Cash | (to record purchase of Rafts and Truck) Prepaid Rent Cash (to record prepayment of rent 3 months) Unearned Guiding Revenue Cash (to record payment for services not yet performed) FlyRod Inventory Accounts Payable (to record purchase of inventory on account) Supplies for guides Cash (to record purchase of supplies) No entry Cash Guiding Revenue (to record Services performed) Cash Store Sales (to record the sale of a Flyrod) 10 Cash 236 5,000 5,000 1,200 1,200 125 300 300 500 500 1,600 1,600 101 2,500 2,500 15 655 101 | 60 60 201 1,200 1,200 Guiding Revenue (to record payment for services performed) Advertising Expense Cash (to record advertising expense) Accounts Payable Cash (to record payment to A/P) Repair Expense Accounts Payable (to record repair expense) Wages Expense Cash (to record wages paid) Wages Expense 18 200 200 19 623 2,000 2,000 450 Cash 450 22 404 1,250 800 450 6 2,500 403 2,500 27 677 150 150 28 (to record wages paid) Accounts Receivable Store Sales Guiding Revenue Unearned Guiding Revenue Guiding Service Revenue (To record services performed) Telephone Expense Cash (to record phone expense) Account Payable Cash (to record payment on account) Dividends Cash (to record payment of dividends) Adjusting Entries Insurance Expense Prepaid insurance (to record insurance expense 1 month insurance premium adjusted) 201 200 200 29 319 200 637 510 128 510 510 637 128 510 Adjusting Entries Insurance Expense Prepaid insurance (to record insurance expense 1 month insurance premium adjusted) Depreciation Expense- Truck Accumulated Depreciation- Truck 30 613 183.33 183.33 165 615 | 30 Depreciation Expense Rafts 333.33 Accumulated Depreciation Rafts 163 333.33 30 Rent Expense 638 1,200 Prepaid Rent 1.200