Paulson's Pet Store completed the Adjusted Trial Balance for the year ended December $31,20--.$ Owner's equity as of January $1,20--,$ was $$490,520.$ The current portion of Note Payable is $$5,000.$

Paulson's Pet Store

End$-$of$-$Period Spreadsheet $($Partial$)$

December $31,20--$

ACCOUNT TITLE ADJUSTED TRIAL BALANCE

DEBIT CREDIT

Cash $23,450\mathrm{.}00$

Accounts Receivable $9,360\mathrm{.}00$

Merchandise Inventory $64,800\mathrm{.}00$

Estimated Returns Inventory $1,100\mathrm{.}00$

Supplies $2,300\mathrm{.}00$

Prepaid Insurance $1,800\mathrm{.}00$

Land $90,000\mathrm{.}00$

Building $350,000\mathrm{.}00$

Accum. Depr.$$Building $20,000\mathrm{.}00$

Store Equipment $120,000\mathrm{.}00$

Accum. Depr.$$Store Equipment $3,600\mathrm{.}00$

Accounts Payable $9,570\mathrm{.}00$

Customer Refunds Payable $1,500\mathrm{.}00$

Wages Payable $1,200\mathrm{.}00$

Sales Tax Payable $3,430\mathrm{.}00$

Note Payable $40,000\mathrm{.}00$

B$.$ Paulson, Capital $510,520\mathrm{.}00$

B$.$ Paulson, Drawing $4,900\mathrm{.}00$

Income Summary $59,300\mathrm{.}0064,800\mathrm{.}00$

$900\mathrm{.}001,100\mathrm{.}00$

Sales $326,050\mathrm{.}00$

Sales Returns and Allowances $5,360\mathrm{.}00$

Purchases $162,650\mathrm{.}00$

Purchases Returns and Allowances $4,080\mathrm{.}00$

Purchases Discounts $3,200\mathrm{.}00$

Freight$-$In $1,600\mathrm{.}00$

Wages Expense $69,300\mathrm{.}00$

Advertising Expense $1,300\mathrm{.}00$

Supplies Expense $700\mathrm{.}00$

Phone Expense $2,736\mathrm{.}00$

Utilities Expense $2,864\mathrm{.}00$

Insurance Expense $1,600\mathrm{.}00$

Depr. Expense$$Building $10,000\mathrm{.}00$

Depr. Expense$$Store Equipment $1,800\mathrm{.}00$

Miscellaneous Expense $600\mathrm{.}00$

Interest Expense $630\mathrm{.}00$

$989,050\mathrm{.}00989,050\mathrm{.}00$

$321,340\mathrm{.}00399,230\mathrm{.}00$

Net Income $77,890\mathrm{.}00$

Required:

Question Content Area

$1.$ Prepare a multiple$-$step income statement.

Paulson's Pet Store

Income Statement

For Year Ended December $31,20--$

Revenue from sales:

Sales

$Sales

$326,050$

Less: Sales returns and allowances

Less: Sales returns and allowances

$5,360$

Net sales

$Net sales

Cost of goods sold:

Merchandise inventory, January $1,20--$

blank $Merchandise inventory, January $1,20--$

blank blank

blank

$

blank

Purchases

$Purchases

$162,650$

Less: Purchases returns and allowances

$Less: Purchases returns and allowances

$4,080$

$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$

blank $$-$ Select $-$

blank blank

blank $-$ Select $-$

$-$ Select $-$

blank

$-$ Select $-$

$$-$ Select $-$

Operating expenses:

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

blank blank $-$ Select $-$

blank

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$

Other expenses:

$-$ Select $-$

$$-$ Select $-$

Feedback Area

Feedback

Net sales $($with details$)$

$-$Cost of goods sold $($with details$)$

$=$ Gross profit

$-$Operating expenses

$=$ Income from operations

$+$ Other revenues

$-$Other expenses

$=$ Net income $($loss$)$

Since you are provided with an Adjusted Trial Balance only and not a full spreadsheet, you will have to deduce beginning inventory amounts from the Income Summary account.

Question Content Area

$2.$ Prepare a statement of owner's equity.

Paulson's Pet Store

Statement of Owner's Equity

For Year Ended December $31,20--$

$$-$ Select $-$

$-$ Select $-$

Total investment $fill in the blank b$181$e$0$fd$4$fdc$02$f$\_5$

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$

Feedback Area

Feedback

The beginning capital balance is provided in the problem data. Determine the additional investment using the balance in the spreadsheet and the beginning balance. Net income and withdrawals can be found in the spreadsheet.

Question Content Area

$3.$ Prepare a balance sheet.

Paulson's Pet Store

Balance Sheet

December $31,20--$

Assets

Current assets:

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

blank $-$ Select $-$

blank

$-$ Select $-$

$-$ Select $-$

Total current assets $fill in the blank c$5$ff$09$fca$03$e$072\_13$

Property, plant, and equipment:

blank $$-$ Select $-$

blank

$$-$ Select $-$

blank blank

$-$ Select $-$

$-$ Select $-$

blank

$$-$ Select $-$

blank blank

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Total assets $fill in the blank c$5$ff$09$fca$03$e$072\_27$

Liabilities

Current liabilities:

$$-$ Select $-$

blank blank

$-$ Select $-$

$-$ Select $-$

blank blank

$-$ Select $-$

$-$ Select $-$

Total current liabilities $fill in the blank c$5$ff$09$fca$03$e$072\_38$

Long$-$term liabilities:

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Total liabilities $fill in the blank c$5$ff$09$fca$03$e$072\_44$

Owner$$s Equity

$-$ Select $-$

Total liabilities and owner's equity $fill in the blank c$5$ff$09$fca$03$e$072\_47$