Income Statement, Statement of Owner's Equity, and Balance Sheet

1. Prepare a multiple-step income statement.

2. Prepare a statement of owner's equity

3. Prepare a balance sheet.

Paulson's Pet Store completed the work sheet below for the year ended December 31, 20--. Owner's equity as of January 1, 20--, was $22,548. The current portion of Mortgage Payable is $540.

Paulson's Pet Store Work Sheet For Year Ended December 31, 20 --
	TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE		INCOME STATEMENT		BALANCE SHEET
ACCOUNT TITLE	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
Cash	15,880				15,880				15,880
Accounts Receivable	2,370				2,370				2,370
Merchandise Inventory	14,992		(b) 16,514	(a) 14,992	16,514				16,514
Supplies	836			(c) 209	627				627
Prepaid Insurance	584			(d) 146	438				438
Equipment	5,792				5,792				5,792
Accum. Depr.Equipment		454		(e) 454		908				908
Accounts Payable		4,924				4,924				4,924
Wages Payable				(f) 268		268				268
Sales Tax Payable		870				870				870
Mortgage Payable		4,044				4,044				4,044
B. Paulson, Capital		24,522				24,522				24,522
B. Paulson, Drawing	1,182				1,182				1,182
Income Summary			(a) 14,992	(b) 16,514	14,992	16,514	14,992	16,514
Sales		71,500				71,500		71,500
Sales Returns and Allowances	1,302				1,302		1,302
Purchases	40,656				40,656		40,656
Purchases Returns and Allowances		1,058				1,058		1,058
Purchases Discounts		820				820		820
Freight-In	360				360		360
Wages Expense	22,286		(f) 268		22,554		22,554
Advertising Expense	304				304		304
Supplies Expense			(c) 209		209		209
Phone Expense	684				684		684
Utilities Expense	714				714		714
Insurance Expense			(d) 146		146		146
Depr. ExpenseEquipment			(e) 454		454		454
Miscellaneous Expense	160				160		160
Interest Expense	90				90		90
	108,192	108,192	32,583	32,583	125,428	125,428	82,625	89,892	42,803	35,536
Net Income							7,267			7,267
							89,892	89,892	42,803	42,803

1. Prepare a multiple-step income statement.

Paulson's Pet Store
Income Statement
For Year Ended December 31, 20--
Revenue from sales:
			$
				$
Cost of goods sold:
			$
		$
	$
		$
			$
				$
Operating expenses:
			$
Total operating expenses
				$
Other expenses:
				$

3. Prepare a balance sheet.

Paulson's Pet Store
Balance Sheet
December 31, 20--
Assets
Current assets:
		$
Total current assets			$
Property, plant, and equipment:
		$
Total assets			$
Liabilities
Current liabilities:
	$
Total current liabilities		$
Long-term liabilities:
	$
Total liabilities			$
Owners Equity
Total liabilities and owner's equity			$

Owner's Equity Statement 2. Prepare a statement of owner's equity Paulson's Pet Store Statement of Owner's Equity For Year Ended December 31, 20-- Total investment Owner's Equity Statement 2. Prepare a statement of owner's equity Paulson's Pet Store Statement of Owner's Equity For Year Ended December 31, 20-- Total investment