3)Use the following Income Statement to prepare a correct multiple-step income statement.You may create a spreadsheet file for this.

BYRNE INDUSTRIES

Income Statement

For the Year Ended December 31, 2002

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Revenues

Net sales (sales returns and allowances $30,000) $600,000

Interest revenue 2,700

Cost of goods sold 275,000

Wages expense 67,500

Selling expense 60,000

Amortization expense store equipment 16,000

Freight out 6,000

Interest expense 12,300

Loss on sale of equipment 4,800

Net income $161,100

4)Given the information provided below, prepare (a) a bank reconciliation in proper format, and (b) the necessary journal entries for the month of September 2001 for Cox Company.

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1. Balance per Bank on September 30$24,070

2. Balance per Books on September 30$19,500

3. Total outstanding cheques at September 30$5,100

4. Debit memoranda:

a. NSF cheque from Lee Co.$540

b. Printing company cheques$60

c. Payment to bank of $1,800 note owed bank by Cox plus $300 interest.

5. Credit memorandum: Collection of note receivable for $3,500 plus $600 interest less $100 collection fee.

6. Errors:

a. A cheque written this month to Nance Co. for office supplies cleared the bank at the correct amount of $680, but was recorded by Cox at $860.

b. The bank charged a $210 cheque of Coy Company against Cox's account this month.

7. Deposit in transit on September 30$1,800.