Part 2a: Prepare a Multi-step Income Statement

(Be sure to include all the necessary headings, totals and subtotals as outlined in Chapter 5. You may not need to use all the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Income Statement, use the right column for subtotals and totals.)

__________, Inc.

Income Statement

Year Ended Dec. 31, 2017

Part 2b: Prepare a Statement of Retained Earnings.

__________, Inc.

Statement of Retained Earnings

Year Ended Dec. 31, 2017

Part 2c: Prepare a Classified Balance Sheet (Be sure to include all the necessary subtotals and totals as outlined in Chapter 2. You may not need to use all of the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Balance Sheet, use the right column for subtotals and totals.)

__________, Inc.

Balance Sheet

As of Dec. 31, 2017

Greg, Inc. December 31, 2017 Adjusted Trial balance Debit Credit Cash 39,000 Accounts Receivable 38,900 Allowance for Doubtful Accounts 2,000 Short Term Note Receivable 50,000 Interest Receivable 1,350 Supplies 5,000 Prepaid Insurance 46,000 Inventory 6,500 Vehicle 16,000 Equipment 43,000 Accumulated Depreciation 21,000 Accounts Payable 8,000 Unearned Revenue 14,000 Wages Payable 2,000 Long-Term Notes Payable 40,000 Common Stock 102,000 Retained Earnings (1/1/2017) 2,500 Dividends 2,000 Sales 519,500 Sales Returns & Allowances 4,000 Sales Discounts 3,000 Cost of Goods Sold 49,500 Delivery Expense 5,000 Depreciation Expense 19,000 Bad Debt Expense 2,600 Rent Expense 96,000 Insurance Expense 25,000 Wages Expense 195,000 Supplies Expense 16,000 Interest Revenue 1,350 Loss on Disposal 7,000 Interest Expense 8,500 Income Tax Expense 34,000 Total 712,350 712,350