Debit

Cash

$45,750

Accounts receivable

92,000

Inventory

84,400

Prepaid insurance

7,200

Office supplies

4,800

Furniture & fixtures

28,000

Accumulated Depreciation - Furn. & Fixtures

10,800

Delivery equipment

70,000

Accumulated depreciation - delivery equip.

24,400

Accounts payable

69,400

Long-term notes payable

30,000

Common stock

125,000

Retained earnings

42,000

Sales revenue

1,165,000

Cost of goods sold

822,200

Utilities Expense

5,600

Salaries Expense

108,000

Delivery Expense

36,800

Advertising Expense

28,200

Rent Expense

30,000

Office Salaries Expense

72,000

Income tax expense

During the year, the accounting department prepared monthly statements but no adjusting entries
were made in the journals and ledgers. Data for the year-end procedures are as follows:
	Prepaid insurance, December 31	$2,600
	Depreciation expense on furniture and fix for year	3,000
	Depreciation expense on delivery equip for the year	10,000
	Salaries payable, December 31	2,800
	Office Supplies on hand, December 31	1,800

12,000

b. Prepare a multi-step income statement for the year.
OREGON DISTRIBUTORS
Income Statement
For the Year Ended December 31
	Sales Revenue	$1,165,000
	Cost of Goods Sold	822,200
	Gross profit on sales	342,800
Operating expenses
	Selling, General and Administrative Expense
Income before income taxes
	Income Tax Expense	12,000
Net Income
		822,200