Information from the unadjusted trial balance of Electric Bike on December 31, 2020, the end of the annual accounting period, is as follows:

Cash ..........................................................

$ 8,200

Accounts receivable ..................................

22,765

Merchandise inventory .............................

34,700

Store supplies ............................................

2,465

Office supplies ..........................................

785

Prepaid insurance ......................................

3,355

Equipment .................................................

75,590

Accumulated depreciation, equipment .....

13,755

Accounts payable ......................................

8,100

Salaries payable ........................................

-0-

Braeden Li, capital ....................................

170,715

Braeden Li, withdrawals ...........................

62,500

Interest income .........................................

320

Sales ..........................................................

529,500

Sales returns and allowances ....................

5,170

Cost of goods sold ....................................

381,260

Salaries expense ........................................

96,400

Rent expense .............................................

29,200

Supplies expense .......................................

-0-

Depreciation expense, equipment .............

-0-

Insurance expense .....................................

-0-

Required

1. Prepare unadjusted Trial Balance from the above information

2. Record adjusting entries for the following information.

a. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a resale value at the end of its life of $14,590.

b. The balance in the Prepaid Insurance account was reviewed and it was determined that $260 was unused at December 31, 2020.

c. A review of the store supplies on December 31, 2020, revealed a balance on hand of $2,030; a similar examination of the office supplies showed that $645 had been used.

d. Accrued salaries payable, $1,850.

e. A count of the merchandise inventory revealed a balance on hand December 31, 2020, of $33,890.

3. Using the above adjustments Prepare adjusted trial Balance

4. Using adjusted trial balance numbers, prepare a multiple-step income statement