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 $22,157. The current portion of Mortgage Payable is $504. 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 15,859 15,859 15.859 Accounts Receivable 2,346 2,346 2,346 Merchandise Inventory 14,974 (b) 16,534 (a) 14,974 16,534 16,534 Supplies 796 (c) 199 597 597 Prepaid Insurance 588 (d) 147 441 441 Equipment 5,304 5,304 5,304 Accum. Depr.-Equipment 432 (e) 432 864 864 Accounts Payable 4,942 Wages Payable (f) 252 Sales Tax Pavahle 844 4,942 252 844 4,942 252 844 Sales Tax Payable Mortgage Payable 844 844 844 3,974 3,974 3,974 B. Paulson, Capital 24,153 24,153 24,153 B. Paulson, Drawing 1,236 1,236 1,236 Income Summary (a) 14,974 (b) 16,534 14,974 16,534 14,974 16,534 Sales 71,548 71,548 71,548 Sales Returns and Allowances 1,344 1,344 1,344 Purchases 40,662 40.662 40,662 Purchases Returns and Allowances 1,024 1,024 1,024 Purchases Discounts 830 830 830 Freight-In 384 384 384 Wages Expense 22,336 (f) 252 22,588 22,588 Advertising Expense 288 288 288 Supplies Expense (c) 199 199 199 Phone Expense 682 682 682 Utilities Expense 724 724 724 Insurance Expense (d) 147 147 147 Depr. Expense-Equipment (e) 432 432 432 Miscellaneous Expense 148 148 148 Interest Expense 76 76 76 107,747 107,747 32,538 32,538 124,965 124,965 82,648 89,936 42.317 35,029 Net Income 7,288 7,288 89,936 89,936 42.317 42,317 Multiple-Step Income Statement 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: Balance Sheet 3. Prepare a balance sheet. Paulson's Pet Store Balance Sheet December 31, 20-- Current assets: Assets Total current assets Property, plant, and equipment: Total assets Current liabilities: Total current liabilities Long-term liabilities: Liabilities Operating expenses: Total operating expenses Other expenses: Property, plant, and equipment: Total assets Current liabilities: Total current liabilities Long-term liabilities: Liabilities Total liabilities Owner's 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 X