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 $22,439. The current portion of Mortgage Payable is $494.

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	15,881				15,881				15,881
Accounts Receivable	2,346				2,346				2,346
Merchandise Inventory	14,998		(b) 16,538	(a) 14,998	16,538				16,538
Supplies	820			(c) 205	615				615
Prepaid Insurance	596			(d) 149	447				447
Equipment	5,462				5,462				5,462
Accum. Depr.Equipment		468		(e) 468		936				936
Accounts Payable		4,882				4,882				4,882
Wages Payable				(f) 264		264				264
Sales Tax Payable		864				864				864
Mortgage Payable		3,996				3,996				3,996
B. Paulson, Capital		24,395				24,395				24,395
B. Paulson, Drawing	1,218				1,218				1,218
Income Summary			(a) 14,998	(b) 16,538	14,998	16,538	14,998	16,538
Sales		71,502				71,502		71,502
Sales Returns and Allowances	1,378				1,378		1,378
Purchases	40,654				40,654		40,654
Purchases Returns and Allowances		1,054				1,054		1,054
Purchases Discounts		816				816		816
Freight-In	384				384		384
Wages Expense	22,300		(f) 264		22,564		22,564
Advertising Expense	318				318		318
Supplies Expense			(c) 205		205		205
Phone Expense	674				674		674
Utilities Expense	728				728		728
Insurance Expense			(d) 149		149		149
Depr. ExpenseEquipment			(e) 468		468		468
Miscellaneous Expense	140				140		140
Interest Expense	80				80		80
	107,977	107,977	32,622	32,622	125,247	125,247	82,740	89,910	42,507	35,337
Net Income							7,170			7,170
							89,910	89,910	42,507	42,507

Required

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:
				$