On January 1, Year 1, the general ledger of a company includes the following account balances:

Accounts	Debit	Credit
cash	$59,000
accounts receivable	$25,600
allowance for uncollectible accounts		2,500
inventory	36,600
notes receivable (5%, due in 2 years)	15,600
land	158,000
Accounts payable		15,100
common stock		223,000
retained earnings		54,200
Totals	294,800	294,800

During January 1 Year 1, the following transactions occur:

January 1	Purchase equipment for $19,800. The company estimates a residual value of $1,800 and a six-year service life.
January 4	Pay cash on account payable, $9,800
January 8	Purchase additional inventory on account, $85,900.
January 15	Receive cash on accounts receivable, $22,300.
January 19	Pay cash for salaries, $30,100
January 28	Pay cash for January utilities, $16,800
January 30	Sales for January total $223,00. All of these sales are on account. The cost of the units sold is $116,500.

Information for adjusting entries:

a. Depreciation on the equipment for the month of January is calculated using the straight-line method.

b. The company estimates future uncollectible accounts. The company determines $3,300 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)

c. Accrued interest revenue on notes receivable for January

d. Unpaid salaries at the end of January are $32,900.

e. Accrued income taxes at the end of January are $9,300.

Prepare a multi-step income statement for the period ended January 31, Year 1.

MULTIPLE-STEP	INCOME	STATEMENT
FOR THE MONTH	ENDED	JANUARY 31, YEAR 1
		$
Expenses
Total operating expenses
		$