1. Prepare a multiple-step income statement in the fifth worksheet in the Excel file. Income tax expense is 30%. No earnings per share calculations required.
2. https://www.chegg.com/homework-help/questions-and-answers/prepare-adjusted-trial-balance-dec-31-2021-1-dresser-paid-interest-due-bonds-payable-janua-q88989056

1. Dresser paid the interest due on the Bonds Payable on January 1. 2. Dresser paid $950 of salaries and wages, which includes the amount accrued as of December 31, 2020. 3. Dresser sold 4,000 units of inventory for $15.00 each. 4. Dresser purchased supplies on account for $1,300. 5. Dresser purchased 2,000 units of inventory for $1.60 each. 6. Dresser sold 2,600 units of inventory for $16.00 each. 7. Dresser wrote off as uncollectible the accounts of Barker Corporation ($2,200) and Elm Company ($3,400). 8. Dresser paid the interest due on the Bonds Payable on July 1. 9. Dresser purchased 2,500 units of inventory for $1.62 each. 10. Dresser collected $1,400 from Elm Company, part of the balance previously written off. 11. Dresser paid salaries and wages of $72,000. 12. Dresser paid $6,600 for insurance coverage from May 1, 2021 thru April 30, 2022. 13. Dresser sold 3,500 units of inventory for $16.50 each. 14. Dresser collected $87,800 from customers on account. 15. Dresser purchased 3,800 units of inventory for $1.65 each. 16. Dresser paid $10,300 on accounts payable. 17. Dresser sold 500 units of inventory for $15.50 each as a cash sale. 18. Dresser paid $1,600 selling expenses and $3,850 administrative expenses. 19. Dresser declared and paid $6,000 in dividends to its stockholders. 20. Dresser accepted a $55,000, 6%, 3 year note receivable from a trusted customer for 3,000 units of inventory on October 1. The market rate of interest on Oct. 1 was 5%. Interest is received semiannually on April 1 and Oct. 1 Adjusting Journal Entries: 1. Prepaid insurance expires evenly each month. 2. A count of supplies at year end revealed $480 of supplies on hand. 3. Interest is recorded on the long-term note receivable. 4. Interest is recorded on the Bonds Payable. 5. Depreciation on the equipment is calculated using the sum-of-years-digits method. The salvage value is $2,000, life is 10 years, and 4 years are depreciated as of Dec. 31, 2020. 6. Depreciation on the building is calculated using the straight-line method. The salvage value is $10,000, life is 30 years, and 10 years are depreciated as of Dec. 31, 2020. 7. Salaries and wages payable at year end amounted to $800. 8. Dresser performed an aging analysis of its year end Accounts Receivable as follows: 0-30 days 31-60 days 61-90 days > 90 days A/R Balance % $ (balance) 60% 20% 10% 10% % Uncollectible 10% 30% 50% 70% 9. Income tax is recorded at $25,946. Check figures: Cash ending balance $ 3,950 Total Unadjusted Trial Balance $ 423,725 Inventory ending balance $ 3,795 Total Adjustment columns on Worksheet $ 63,300 Interest receivable balance $ 825 Income before income tax $ 86,488 Accounts receivable balance $ 81,670 Total Current Assets $ 73,319 Retained earnings balance $ 68,067 Total Current Liabilities $ 41,466