Review Sheet Exam #1 1. The following balances were taken from the books of Schimank Corp. on December 31, 2022. Interest revenue Cash $ 120,400 Accumulated depreciation-equipment$ 56,000 71,400 Accumulated depreciation-building 39,200 Sales 1,932,000 Notes receivable 217,000 Accounts receivable 271,600 210,000 Selling expenses Prepaid insurance 28,000 Accounts payable 238,000 Sales returns & allowances 210,000 Bonds payable 140,000 Allowance for doubtful accounts 9,800 G&A expenses 135,800 Sales discounts 63,000 Accrued liabilities 44,800 Land 140,000 Interest expense 84,000 Equipment 280,000 Notes payable 140,000 Building 196,000 Cost of goods sold 869,400 Common stock 700,000 Retained earnings 29,400 Assume the total effective tax rate on all items is 34%. Instructions Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.