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

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

$ 16,400

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

45,530

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

69,400

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

4,930

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

1570

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

6,710

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

151,180

Accumulated depreciation, equipment .....

27,510

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

16,200

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

-0-

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

341,430

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

125,000

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

640

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

1,059,000

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

10,340

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

762,520

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

192,800

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

58,400

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

-0-

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

-0-

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

-0-

Required

1. Prepare unadjusted Trial Balance

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 $29,180.

b. The balance in the Prepaid Insurance account was reviewed and it was determined that $520 was unused at December 31, 2020.

c. A review of the store supplies on December 31, 2020, revealed a balance on hand of $4,060; a similar examination of the office supplies showed that $1290 had been used.

d. Accrued salaries payable, $3,700

e. A count of the merchandise inventory revealed a balance on hand December 31, 2020, of $67,780.

3. Using the above adjustments Prepare adjusted trial Balance

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