Question
Given below are selected account balances from the Trial Balance of Juno Incorporation at June 30, 2021. The company which was incorporated in 2012 prepares
Given below are selected account balances from the Trial Balance of Juno Incorporation at June 30, 2021. The company which was incorporated in 2012 prepares its financial statements after every one year (July-June). Accounts Balances ($) Inventory 35000 Supplies 1000 Prepaid Rent 6888 Equipment 61800 Accumulated Depreciation-Equipment 7200 Accounts Payable 9100 Mortgage Loan 30700 Common Stock ($100 Par Value) 37500 Retained Earnings 61900 Sales 560400 Sales Returns and Allowances 7900 Salaries Expense 39500 Cost of Goods Sold 306800 Utilities Expense 10400 Interest Expense 3500 Advertising Expense 11400 Interest Revenue 5500 Other Operating Expenses 1700 Additional Data: 1. Interest accrued but not paid $1200. 2. The company has to pay 20% tax on the profit it makes. 3. Prepaid rent was paid on January 1, 2021 for the next 2 years. 4. The company depreciates the equipment at the rate of 10% under the straight line method. The equipment is expected to have a salvage value of $5,000. 5. 15% cash dividend was declared on Common Stock. Required: Prepare a Multistep income statement for the year ending June 30, 2021.
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