21. These items are taken from the financial statements of Sam Smith for 2018.

Sam Smith, capital 1/1/18 $53,000

Sam Smith Drawing 5,000

Selling expenses 10,000

Equipment 65,000

Accumulated depreciation (equip) 16,000

Accounts payable 5,300

Cash 16,900

Inventory 3,500

Salaries and wages payable 3,000

Sales 68,000

Cost of merchandise sold 20,000

Administrative expenses 14,100

Accounts receivable 14,000

Notes payable (due 12/31/20) 3,200

Instructions:

Prepare a multiple step income statement and a statement of owners equity for the year ended December 31, 2018 and a classified balance sheet as of December 31, 2018.

Sam Smith, CPA

Income Statement

For the period ending 12/31/18

Sam Smith, CPA

Statement of Owners Equity

For the period ending 12/31/18