Johnson Parker is a automotive parts company that sells car parts and provides car service to customers. This is Johnson Parker's first vear of operations and Balance Sheet Classifications Assets: Current Assets Long Term Investments Property Plant and Equipment Intangible Assets Other Assets ount 10,000 400,000 20,000 150,000o 50,000 100,000o 300,00O 30,000 40,000 250,000o 30,000 100,000O 10,000 390,000O count Description as they noted the following adjusted trial balance at year-end. counts Receivable counts owance for Dou nventory upplies re-Pal As such, they have hired you as their CPA to prepare the income statement and balance sheet for their company. Johnson Parker has notified you of the following things to consider: ense in Liabilities: Current Liabilities Long- Term Debt Stockholders Equity cumulated Depreciation 1.) Net Income hasn't been closed out to retained earnings yet as of the end of the Investment (Available for Sale period. ounts Pavable ages Payable nearned Service Kevenue 2.) When preparing the income statement, ensure that you use the Multiple Step Method mmon Stoc tional Pai ita 3.) Pre-Paid Expenses are for expenses that will be incurred by Johnson Parker aine nrealized Gain from evenue 10,000 1,000,0OO 500,00O ecun 4.) Supplies Inventory are all considered to be used in one year. 5.) Johnson Parkers investments are considered long-term 6.) Classify all selling and administrative expenses under the operating expense ervice Revenue 50,000 10,000 12,000 100,000o 300,00O 30,000 20,000 1,000 500 10,000 93,500 50,000 30,000 5,000 0 0 upplies Expense ent Expense min Wages es leam Wages section on the income statement. eprecation Expense 7.) Items that need to be recorded net of tax for the financial statements are nse entered net of tax on the trial balance nterest Income nterest Expense ain on Sale O ncome Tax Expense Prepare the Balance Sheet and Income Statement on the following tabs below using the adjusted trial balance to the right. ss on Operations of Discontinued Operations ss on Sale of Assets of Discontinued Operations ss on Extraordinary Items