Lee Nicholas has been the owner and operator of World.comAdvertising since its beginning 10 years ago. The company has prospered. Recently, Nicholas mentioned that he would sell the business for the right price.

Assume that you are interested in buying World.com Advertising. You obtain the most recent monthly trial balance, which follows. Revenues and expenses vary little from month to month, and January is a typical month. The trial balance shown is a preliminary, or unadjusted, trial balance. The controller informs you that the necessary accrual adjustments should include revenues of $3,800 and expenses of $1,100. Also, if you were to buy World.com Advertising, you would hire a manager so you could devote your time to other duties. Assume that this person would require a monthly salary of $5,000.

Stockholders of Poppa Rallo's Pizza have prospered during the company's second year of operation. In order to help with decisions about whether to open another pizzeria, Poppa Rollo's Pizza has prepared the current income statement of the business. Jan Lorange, the controller,read in an industry trade journal that a successful two-year-old pizzeria meets the following criteriat 1. Gross profit percentage is at least 60%. 2. Net income is at least $90,000 Lorange believes the business meets both criteria. She intends to go ahead with the expansion plan and asks your advice on preparing the income statement in accordance with Generally Accepted Accounting Principles. When you point out that the statement includes errors, Lorange assures you that all amounts are correct. But some items are listed in the wrong places Peppa Bolos Year End Reel 20% Net als Gale Sale $195.000 21.00 219.00 Gruss 134,600 100 1.000 200 1700 Thematieme pene 6300 Oder Sales Discountered Net 395.000 Requirement Prepare a corrected multi-step income statement and make a recommendation to Lorange about whether Poppa Rollo's Plaza should undertake the expansion. Ignore classifying the expenses as selling or administrative