Following their early retirements from jobs as elementary school teachers, your parents decided to start a landscaping business. Paradise Landscapes Inc. (PLI) has now been in business for several years. A student at the Paul J. Hill School of Business, your parents expect that you will prepare PLI's financial statements. They have asked that you prepare the following A multiple step income statement The financial statements must be prepared in good form based on the adjusted trial balance which follows. (round all amounts to the nearest dollar) Paradise Landscaping Inc. Adjusted Trial Balance December 31, 2020 Account Accounts payable Accounts receivable Accumulated depreciation- equipment Allowance for doubtful accounts Dr. Cr. $5,000 $15,000 $40,000 $3,000 Cash 55,000 Cash dividends 20,000 Common shares 10,100 Cost of Goods Sold 110,000 Depreciation expense 4,500 Equipment 100,000 Income tax expense 18,000 Income tax payable 2,500 Interest expense 7,000 Inventory 13,000 Land 50,000 Loss on sale of equipment 6,000 Notes payable 75,000 Operating expenses 90,000 Prepaid expenses 8,000 Retained earnings 53,600 Sales 325,000 Sales returns and allowances 16,000 Selling expenses 3,250 Wages payable 1,550 Totals $515,750 $515,750 According to the most recent statement for the note payable, the principal portion to be repaid in 2021 is $17,500.