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.)

Business
End of Period Worksheet
For the Year Ended December 31, 2014
	Unadjusted				Adjusted
Account Title	Trial Balance		Adjustments		Trial Balance
	DR	CR	DR	CR	DR	CR
Cash	382,030	-		89,000	293,030
Accounts Receivable	575,000	-			575,000
Allowance for Doubtful Accounts	-	22,000		22,000		44,000
Interest Receivable	-	-	1,333		1,333
Merchandise Inventory	375,000	-			375,000
Prepaid Insurance	-	-	4,821		4,821
LIFO Reserve	-	-		35,000		35,000
Prepaid Advertising	-	-	14,000		14,000
Prepaid Rent	12,000	-		3,000	9,000
Office Supplies	7,000	-		2,986	4,014
Note Receivable	40,000				40,000
Available for Sale Securities	250,000	-	24,986		274,986
Office Building	3,750,000	-			3,750,000
Accumulated Depreciation - Office Building	-	87,500		335,000		422,500
Storage Building	1,175,000	-			1,175,000
Accumulated Depreciation - Storage Building	-	-		15,050		15,050
Land	750,000	-			750,000
Leasehold Improvements	225,000	-	2,514		227,514
Accumulated Depreciation - Leasehold Improvements	-	-		45,503		45,503
Office Equipment	250,000	-			250,000
Accumulated Depreciation - Office Equipment	-	52,600		56,775		109,375
Patent	100,000	-		28,571	71,429
Accounts Payable	-	125,000	22,000			103,000
Sales Tax Payable	-	-		7,018		7,018
Salaries Payable	-	20,000				20,000
Payroll Taxes Payable	-	12,000				12,000
Interest Payable	-	-		71,000		71,000
Income Tax Payable	-	-
Unearned Rent Revenue	-	-	33,000		33,000
Loan Payable - Onstar Bank	-	500,000				500,000
Loan Payable - Coldstar Bank	-	1,500,000				1,500,000
Common Stock	-	1,500,000				1,500,000
Additional Paid in Capital	-	2,390,000				2,390,000
Retained Earnings	-	629,000				629,000
Accumulated Other Comprehensive Income	-	25,000				25,000
Dividends	84,750	-			84,750
Sales	-	3,500,000	13,018			3,486,982
Sales Returns and Allowances	42,250	-			42,250
Sales Discounts	19,250	-			19,250
Cost of Goods Sold	1,750,000	-	35,000		1,785,000
Sales Salaries Expense	250,000	-			250,000
Office Salaries Expense	120,000	-			120,000
Advertising Expense	18,000	-		14,000	4,000
Depreciation Expense - Office Building	-		15,050		15,050
Depreciation Expense - Leasehold Improvements	-	-	45,503		45,503
Depreciation Expense - Office Equipment	-	-	56,775		56,775
Miscellaneous Selling Expense	23,000	-		2,514	20,486
Research & Development Expense	2,000		25,000		27,000
Rent Expense - Storage Facility	-	-	3,000		3,000
Insurance Expense	7,500	-		4,821	2,679
Office Supplies Expense	33,000	-	2,986		35,986
Miscellaneous Administrative Expense	9,170	-			9,170
Rent Revenue	-	45,000		33,000		78,000
Interest Revenue on Note Receivable	-	-		1,333		1,333
Dividend Revenue on AFS Securities	-	35,000				35,000
Interest Expense	-	-	71,000		71,000
Bad Debt Expense	43,000	-	16,000		59,000
Payroll Taxes Expense	121,150	-			121,150
Rebate Expense	29,000	-	4,600		33,600
Restricted Cash			67,000		67,000
Amortization Expense			3,571		3,571
Unrealised Holding Loss/Gain				24,986		24,986
Loss on Impairment			335,000		335,000
Rebate Liability				4,600		4,600
TOTALS	10,443,100	10,443,100	796,158	796,158	11,059,347	11,059,347