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Activity 2. Preparation of Single-Step Income Statement (Average). Solve for the requirement in each of the following case problems. Write your solution and answer on the space provided. Case 1. ABS Warehouse Rental had the following adjusted trial balance on December 31, 2020. ABS Warehouse Rental Adjusted Trial Balance December 31, 2020 CREDIT DEBIT 3,050,000 400,000 830,000 80,000 217,200,000 PARTICULARS Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation Wages Payable Interest Payable Unearned Rent Long-term notes payable ABS, Capital ABS, Withdrawals Rent Earned Wages Expenses Utilities Expense Insurance Expense 29,100,000 880,000 3,600,000 460,000 150,000,000 40,340,000 21,000,000 57,500,000 25,000,000 1,900,000 3,200,000 Supplies Expense 250,000 Total 281,880,000 281,880,000 Requirement: Prepare the income statement of the company using a single-step format and nature of expense method of expense analysis. Use a separate sheet of paper for your solution. Attach your answer to this activity sheet upon submission. Case 2. Below is the copy of Pioneer Advertising's incomplete Worksheet dated October 31, 2017. Requirement: Evaluate the worksheet and prepare the income statement of the company using a single-step format and nature of expense method of expense analysis. Use a separate sheet of paper for your solution. Attach your answer to this activity sheet upon submission. Pa (6) 5.000 w Post Pro Our B C LM I ! PIONEER ADVERTISING Worksheet For the Month Ended October 31, 2017 Trial Balance Adjustments Adjusted Income Balance Trial Balance Statement Sheet Account Titles Dr. C Dr. G Dr. Cr. Dr. Gr. Dr. G Cash 15,200 15,200 15,200 9 Supplies 2.500 (a) 1,500 1,000 1.000 10. Prepaid Insurance 600 SO 550 550 11 Equipment 5.000 5,000 5.000 12 Notes Payable 5,000 13 Accounts Payable 5.000 2,500 2.500 2,500 14 Unearned Service Revenue 1,200 (d) 400 800 800 15 Owner's Capital 10,000 10.000 10.000 16 Owner's Drawings 500 500 500 17 Service Revenue 10,000 (d) 400 10,600 10,600 18 (e) 200 19 Salaries and Wages Expense 4,000 (9) 1,200 5,200 5,200 20 Rent Expense 900 900 900 21 Totals 28,700 28,700 22 23 24 Supplies Expense (a) 1,500 1,500 1,500 25 Insurance Expense (b) (b 50 50 50 26 Accum. Depreciation 27 Equipment 40 40 40 28 Depreciation Expense 40 40 40 291 Accounts Receivable le) 200 200 30 Interest Expense 200 (0 SO 50 50 31 Interest Payable 50 50 32 Salaries and Wages Payable 50 (9) 1,200 1,200 33 Totals 1,200 3,440 3,440 30,190 30,190 7,740 10,600 22,450 19,590 TERCER ESTERESSE Case 2. Below is the copy of Pioneer Advertising's incomplete Worksheet dated October 31, 2017. Requirement: Evaluate the worksheet and prepare the income statement of the company using a single-step format and nature of expense method of expense analysis. Use a separate sheet of paper for your solution. Attach your answer to this activity sheet upon submission. Part Hi D F GH PIONEER ADVERTISING Worksheet For the Month Ended October 31, 2017 Adjusted Income Balance Trial Balance Adjustments Trial Balance Statement Sheet 7 Account Titles Dr. a. Dr. Cr Dr. Cr. Dr. Cr Dr Bcash 15,200 15,200 15,200 9 Supplies 2.500 (a) 1.500 1.000 1,000 10. Prepaid Insurance 600 (b) SO 550 550 11 Equipment 5,000 5,000 5,000 12 Notes Payable 5.000 5,000 5.000 13 Accounts Payable 2,500 2.500 2,500 14 Unearned Service Revenue 1,200 (d) 400 800 800 15 Owner's Capital 10,000 10,000 10,000 15 Owner's Drawings 500 500 500 17 Service Revenue 10,000 (d) 400 10,600 10.600 18 (e) 200 19 Salaries and Wages Expense 4,000 (g) 1,200 5,200 5,200 20 Rent Expense 900 900 900 21 Totals 28,700 28.700 22 23 24 Supplies Expense (a) 1,500 1,500 1,500 25 Insurance Expense (b) 50 50 50 26 Accum. Depreciation 27 Equipment 40 40 40 28 Depreciation Expense (c) 40 40 40 291 Accounts Receivable (e) 200 200 200 30 Interest Expense (0) 50 50 50 31 Interest Payable (1) 50 50 50 32 Salaries and Wages Payable (9) 1,200 1,200 1,200 3,440 Totals 3,440 30,190 30,190 7,740 10,600 22,450 19,590 33 (c)