Income Statement

Instructions

Amount Descriptions

Income Statement

Statement of Owners Equity

Balance Sheet

Instructions

Backlund Farm Supply completed the Adjusted Trial Balance for the year ended December 31, 20--. Owners equity as of January 1, 20--, was $507,752. The current portion of Note Payable is $3,000.

Backlund Farm Supply

End-of-Period Spreadsheet (Partial)

December 31, 20--

1	ACCOUNT TITLE	ADJUSTED TRIAL BALANCE DEBIT	ADJUSTED TRIAL BALANCE CREDIT
2	Cash	25,784.00
3	Accounts Receivable	10,296.00
4	Merchandise Inventory	71,280.00
5	Estimated Returns Inventory	1,320.00
6	Supplies	2,640.00
7	Prepaid Insurance	1,980.00
8	Land	99,000.00
9	Building	385,000.00
10	Accumulated Depreciation-Building		22,000.00
11	Store Equipment	132,000.00
12	Accumulated Depreciation-Store Equipment		3,960.00
13	Accounts Payable		10,516.00
14	Customer Refunds Payable		1,760.00
15	Wages Payable		1,320.00
16	Sales Tax Payable		3,784.00
17	Note Payable		17,600.00
18	J. Buckland, Capital		587,752.00
19	J. Buckland, Drawing	5,280.00
20	Income Summary	65,120.00	71,280.00
21		880.00	1,320.00
22	Sales		358,644.00
23	Sales Returns and Allowances	5,896.00
24	Purchases	178,904.00
25	Purchases Returns and Allowances		4,488.00
26	Purchases Discounts		3,520.00
27	Freight-In	1,760.00
28	Wages Expense	76,340.00
29	Advertising Expense	1,320.00
30	Supplies Expense	880.00
31	Phone Expense	3,010.00
32	Utilities Expense	3,150.00
33	Insurance Expense	1,760.00
34	Depreciation Expense-Building	11,000.00
35	Depreciation Expense-Store Equipment	1,980.00
36	Miscellaneous Expense	660.00
37	Interest Expense	704.00
38		$1,087,944.00	$1,087,944.00
39		353,364.00	439,252.00
40	Net Income	$85,888.00

Required:

1.	Prepare a multiple-step income statement.

Income Statement

1. Prepare a multiple-step income statement.

Income Statement Instructions

Backlund Farm Supply

Income Statement

For Year Ended December 31, 20--

1	Revenue from sales:
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5	Cost of goods sold:
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19	Operating expenses:
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31	Other expenses:
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