CHAPTER 5 Accounting for Merchandising Activities Problem 5-8A Income statements-perpetual LO5 CHECK FIGURE: 1. Operating expenses = $141,800; Profit = $73,200 The following adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year, December 31, 2020: Debit Credit 101 119 125 128 165 $ 8,000 16,200 10,000 4,000 51,000 166 $ 46,800 69,000 167 168 201 301 302 413 415 34,200 16,000 29,000 41,000 291,800 Cash Merchandise inventory. Supplies Prepaid insurance. Store equipment Accumulated depreciation, store equipment. Office equipment. Accumulated depreciation, office equipment Accounts payable Jonah Bell, capital. Jonah Bell, withdrawals Sales. Sales discounts Cost of goods sold. Depreciation expense, store equipment.. Depreciation expense, office equipment Sales salaries expense. Office salaries expense. Insurance expense, store Insurance expense, office Rent expense, office space. Rent expense, selling space Office supplies expense Store supplies expense.. Advertising expense Totals 505 612 613 622 623 637 638 640 2,000 74,800 5,200 3,800 46,000 32,000 2,000 1,600 13,000 17.000 1,200 2,400 17,600 $417,800 641 651 652 655 $417,800 Required 1. Prepare a classified multiple-step income statement that would be used by the business's owner (like Exhibit 5.13). 2. Prepare a multiple-step income statement that would be used by external users (like Exhibit 5.14). 3. Prepare a single-step income statement that would be provided to decision makers outside the company (like Exhibit 5.15). Analysis Component: If you were a decision maker external to Bell Servicing, which income statement for- mat would you prefer and why, if you had a choice? Which income statement format(s) could you expect as an external user? Why