hnson Parker is a automotive parts company that sells car arts and provides car service to customers. This is Johnson arker's first year of operations and they noted the following justed trial balance at year-end Balance Sheet Classifications Account Description Accounts Payable Accounts Receivable Accumulated Depreciation Accumulated Other Comprehensive Income Additional Paid In Capital Admin Wages Expense Allowance for Doubtful Accounts Bad Debt Expense ount 1,000,000 Assets: 1,500,00O 0o,0OO 140,000 Current Assets Long Term Investments Property Plant and Equipment Intangible Assets Other Assets s such, they have hired you as their CPA to prepare the income atement and balance sheet for their company. Johnson Parker as notified you of the following things to consider 2,000,00O 20,0OO 20,oo0Liabilities: .) Net Income hasn't been closed out to retained earnings yet as Buildin of the end of the period Current Liabilities Long- Term Debt Stockholders Equity 000,0OO 0o,0OO 1,00O oOO,0OOO 0o,0OO 00,00O 1,08o,ooo 10,00O 1,500,00O 250,000 0,0oO 0,0oO 1,200,00O 010,0OO 10,000 Cash Common Stock 2.) When preparing the income statement, ensure that you use Cost of Goods Sold he Multiple Step Method. Deprecation Expense Gain on Sale of PP&E Income Tax Expense 3.) Johnson Parker has one customer with a notes receivable alance. The customer intends to pav this balance off in 5 vears. Interest Income Inventor Investment (Available for Sale Loss on Operations of Discontinued Operations Loss on Sale of Assets of Discontinued Operations Notes Receivable Pre-Paid Expense Rent Expense Retained Earnings Revenue (Third Partv Sales Sales Team Wages Service Revenue .) Supplies Inventory are all considered to be used within the ext fiscal year .) Pre-Paid Expenses are for expenses that will be incurred by ohnson Parker within the next fiscal year 5.) Johnson Parkers investments are considered long-term 7.) Classify all selling and administrative expenses under the perating expense section on the income statement. ,000,000 1,000,00O 000,0OO 0o,0OO 0o,0OO 100,0OO 0o,0OO B.) Items that need to be recorded net of tax for the financial tatements are entered net of tax on the trial balance upplies Supplies Expense Unearned Service Revenue epare the Balance Sheet and Income Statement on the following bs below using the adjusted trial balance to the right. ges Pa vable Johnson Parker Multiple Step Income Statement-Fiscal Year End 12/31/2oxx Enter Account Discription Enter Account Discription Enter Account Discription Total Revenue Enter Account Discription Enter Account Discription Gross Profit Operatin enses (Selling and Administrative Enter Account Discription Enter Account Discription Enter Account Discription Enter Account Discription Enter Account Discription Enter Account Discription Enter Account Discription Enter Account Discription Total Operating Expenses Income from Operations Other Revenues Enter Account Discription Enter Account Discription Total Other Revenues Other nses Enter Account Discription Enter Account Discription Total Other Expenses Income from Continued Operations (Before Tax) (Enter Account Discription) Income from Continued Operations Discontinued Operations Enter Account Discription Net Discontinued Operations Net Income Johnson Parker Balance Sheet-Fiscal Year End 12/31/20xX es and Stoc Enter Balance Sheet Classification Enter Balance Sheet Classification Enter Account Discri Enter Account Discription (Enter Account Discription) Net Accounts Receivable Enter Account Discri Enter Account Discri Enter Account Discription Enter Account Discri Enter Account Discription Enter Account Discription Total (Enter Balance Sheet Classification) Enter Balance Enter Account Discri (Enter Account Discri Enter Account Discription Total (Enter Balance Sheet Classification) Long Term Investments Total (Enter Balance Sheet Classification) Total Liabilities (Enter Balance S Enter Account Discription Total (Enter Balance Sheet Classification) ant an assification Enter Account Discri Enter Account Discription Enter Account Discri Enter Account Discri Enter Account Discri Enter Account Discription Total (Enter Balance Sheet Classification) Total (Enter Balance Sheet Classification) er Assets Enter Account Discription Total (Enter Balance S t C ation) Total Assets Total Liabilities and Stockholders Equity Check Figure