Meilleur uses a perpetual inventory system.

The following is a list of the accounts and balances taken from the adjusted trial balance at December 31, 2017 for Meilleur Merchants. The list of accounts is in alphabetical order. All accounts have normal balances.

AccountBalance

Dec. 31

1Accounts payable15,000

2Accounts receivable30,000

3Accumulated depreciationbuilding

15,500

4Accumulated depreciationequipment

10,000

5Advertising expense

4,100

6Building

84,600

7S. Meilleur, capital

75,000

8S. Meilleur, drawings

28,300

9Cash4,500

10Cost of goods sold

234,900

11Depreciation expense

5,700

12Equipment

24,500

13Freight out

640

14Insurance expense

1,550

15Interest expense

2,120

16Interest revenue

1,240

17Land

12,000

18Merchandise inventory

105,000

19Mortgage payable

57,600

20Prepaid insurance

2,100

21Property tax expense

1,100

22Property taxes payable

600

23Rent revenue

1,500

24Salaries expense

42,000

25Salaries payable

650

26Sales

420,200

27Sales discounts

15,200

28Sales returns and allowances

17,800

29Unearned revenue

23,000

30Utilities expense

1,700

Prepare a multiple-step income statement for Meilleur Merchant for the year ended December 31, 2017.

MEILLEUR MERCHANTS

Income Statement