Novak Warehouse Store has an August 31 fiscal year end and uses a perpetual inventory system. An alphabetical list of its account balances at August 31, 2017, follows: All accounts have normal balances. Accounts payable Accounts receivable Accumulated depreciation equipment $29,500 21,000 26,280 12,500 Cash Cost of goods sold Depreciation expense Equipment Freight out Insurance expense Interest expense Interest receivable 565,500 6,570 65,700 4,300 3,000 2,100 270 Interest revenue Merchandise inventory Notes payable Notes receivable Rent expense Sales Sales discounts Sales returns and allowances Supplies expense Unearned revenue V. Novak, capital V. Novak, drawings $960 59,000 34,500 32,500 17,000 705,000 3,400 14,300 6,500 6,000 72,600 61,200 Additional information: 1. All adjustments have been recorded and posted except for the inventory adjustment. According to the inventory count, the company has $56,000 of merchandise on hand. 2. Last year Novak Warehouse Store had a gross profit margin of 21% and a profit margin of 11%. (a) Prepare any additional required adjusting entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Aug. 31 Prepare a single-step income statement. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) NOVAK WAREHOUSE STORE Income Statement