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 $22,332. The current portion of Mortgage Payable is $472. 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 2,326 2,326 2,326 Merchandise Inventory 14,988 (b) 16,470 (a) 14,988 16,470 16,470 Supplies 840 (c) 210 630 630 Prepaid Insurance 584 (d) 146 438 438 Equipment 5,634 5,634 5,634 Accum. Depr.Equipment 454 (e) 454 908 908 Accounts Payable 4,940 4,940 4,940 Wages Payable (f) 338 338 338 Sales Tax Payable 872 872 872 Mortgage Payable 4,048 4,048 4,048 B. Paulson, Capital 24,316 24,316 24,316 B. Paulson, Drawing 1,232 1,232 1,232 Income Summary (a) 14,988 (b) 16,470 14,988 16,470 14,988 16,470 Sales 71,600 71,600 71,600 Sales Returns and Allowances 1,326 1,326 1,326 Purchases 40,652 40,652 40,652 Purchases Returns and Allowances 1,054 1,054 1,054 Purchases Discounts 834 834 834 Freight-In 408 408 408 Wages Expense 22,306 (f) 338 22,644 22,644 Advertising Expense 304 304 304 Supplies Expense (c) 210 210 210 Phone Expense 696 696 696 Utilities Expense 708 708 708 Insurance Expense (d) 146 146 146 Depr. ExpenseEquipment (e) 454 454 454 Miscellaneous Expense 144 144 144 Interest Expense 90 90 90 108,118 108,118 32,606 32,606 125,380 125,380 82,770 89,958 42,610 35,422 Net Income 7,188 7,188 89,958 89,958 42,610 42,610