Intermediate accounting 1

The drop down menu next to each items are: accounts payable accumulated depreciation-buildings accumulated depreciation-eqipment advertising expense allowance for doubtful accounts bonds payable buildings cash cash dividends common stock equipment freight-in gain on sale of land income tax expense insurance expense interest on bonds and notes inventory land legal and professional services notes payble notes recievable purchase discounts purchases rent revenue retained earnings salaries-officers salaries-sales salaries and wages payable sales discounts sales returns and allowances sales revenue supplies travel and entertainment

The following is the schedule of accounts of Thompson Corporation on December 31, 2020. Instructions Prepare a multistep income statement. THOMPSON CORPORATION Income Statement For the Year Ended December 31, 2020 Credit 10,000 Sales 18,000 160,000 18,000 1,100,000 Net sales Cost of goods sold Gross profit 645,000 (645,000) 49,000 28,000 Operating expenses Selling expenses 70,000 THOMPSON CORPORATION Schedule of Accounts December 31, 2020 Debit Purchase Discounts Cash $ 178,700 Accounts Receivable 105,000 Rent Revenue Retained Earnings Salaries and Wages Payable Sales Revenue Notes Receivable 110,000 Accounts Payable Accumulated Depreciation-Equipment Sales Discounts 14,500 Sales Returns and Allowances 17,500 Notes Payable Salaries-Sales 112,000 Salaries-Officers 56,000 Legal and Professional Services 32,000 Advertising Expense 90,000 Travel & Entertainment for Sales Personnel 30,000 Insurance Expense 11,000 Common Stock Income Tax Expense 53,900 Interest on Bonds and Notes 11,000 Cash Dividends 45,000 Allowance for Doubtful Accounts Supplies 14,000 Freight-In 20,000 Land 70,000 Equipment 140,000 Bonds Payable Gain on Sale of Land Accumulated Depreciation - Buildings Inventory 89,000 Buildings 98,000 Purchases 610,000 Totals $ 1,907,600 $ Administrative expenses 300,000 5,000 Income from operations (645,000) Other revenues and gains 100,000 30,000 19,600 (645,000) Other expenses and losses 1,907,600 A physical count of inventory on December 31 resulted in an inventory amount of $64,000; thus, cost of goods sold for 2020 is $645,000. Income before income tax Income tax Net income for the year (645,000) 53,900 (698,900) $