4. Prepare a multiple-step income statement on the proper worksheet. Your Income Statement should be in good form (proper titles, etc., use examples from your book) and well formatted. Do your best designating between selling and administrative expenses. You should use formulas in all cells, not constant numbers. (That means, your income statement should be linked to the adjusted numbers on your worksheet.)

Income Statement
Sales revenues
	Net sales
Operating Expenses
Selling expenses
	Total Selling Expenses
Administrative expenses
	Total administrative expenses
	Total operating expenses
Income from operations
Other
Other
Net income before taxes
Income Tax Expense
Net Income
EPS

Czar Incorporated
End of Period Worksheet
For the Year Ended December 31, 2018
	Unadjusted				Adjusted
Account Title	Trial Balance		Adjustments		Trial Balance
	DR	CR	DR	CR	DR	CR
Cash	264,000			61,600	202,400
Accounts Receivable	555,984				555,984
Allowance for Doubtful Accounts		13,600	28,000		14,400
Interest Receivable			100			100
Merchandise Inventory	340,000		285,000	15,600	609,400
Prepaid Insurance			4,800		4,800
LIFO Reserve		25,600		285,000		310,600
Prepaid Advertising			6,400		6,400
Prepaid Rent	13,600		13,600		13,600
Office Supplies	4,800			28,185		23,385
Note Receivable	20,000			100	19,900
Available for Sale Securities	300,000			67,385	232,615
Office Building	3,000,000			65,000	2,935,000
Accumulated Depreciation - Office Building		70,000		23,833		93,833
Storage Building	1,020,000				1,020,000
Accumulated Depreciation - Storage Building				140,000		140,000
Land	600,000				600,000
Leasehold Improvements	180,000		2,815		182,815
Accumulated Depreciation - Leasehold Improvements				24,442		24,442
Office Equipment	260,000				260,000
Accumulated Depreciation - Office Equipment		52,000		48,160		100,160
Patent	120,000			15,000	105,000
Accounts Payable		276,000	9,600		266,400
Sales Tax Payable				280,000		280,000
Salaries Payable		113,600				113,600
Payroll Taxes Payable		20,000				20,000
Interest Payable				87,000	87,000
Income Tax Payable				354,115	354,115
Unearned Rent Revenue				12,000	12,000
Loan Payable - First Trust		520,000				520,000
Loan Payable - Coldwell Bank		1,600,000				1,600,000
Common Stock		520,000				520,000
Additional Paid in Capital		1,599,000				1,599,000
Retained Earnings		736,000				736,000
Accumulated Other Comprehensive Income		20,000				20,000
Dividends	67,800				67,800
Sales		3,622,560	286,800			3,335,760
Sales Returns and Allowances	33,800			6,800	27,000
Sales Discounts	15,400				15,400
Cost of Goods Sold	1,583,600		15,600		1,599,200
Sales Salaries Expense	349,120				349,120
Office Salaries Expense	219,200				219,200
Advertising Expense	12,800			6,400	6,400
Depreciation Expense - Office Building			23,833		23,833
Depreciation Expense - Leasehold Improvements			24,442		24,442
Depreciation Expense - Office Equipment			48,160		48,160
Leasing Expense - Stores	105,600				105,600
Miscellaneous Selling Expense	18400			15,615	2,785
Research & Development Expense	12,000				12,000
Rent Expense - Storage Facility				13,600		13,600
Insurance Expense	12,000			4,800	7,200
Office Supplies Expense	28,000		28,185		56,185
Miscellaneous Administrative Expense	7,336				7,336
Rent Revenue		60,000	12,000			48,000
Interest Revenue on Note Receivable
Dividend Revenue on AFS Securities		20,000				20,000
Interest Expense			87,000		87,000
Bad Debt Expense	28,000			28,000
Amortization Expense			15,000		15,000
Income Tax Expense			354,115		354,115
Payroll Taxes Expense	96,920
Rebate Expense			12,800		12,800
Unrealized holding loss			67,385		67,385
Depreciation Expense-Storage Building			140,000		140,000
Loss on Impairment			65,000		65,000
Rebate Liability
Restricted Cash for Future Expansion			52,000		52,000
	9,268,360	9,268,360	1,582,635	1,582,635	10,846,790	9,518,480