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The following is a list of the accounts and balances taken from the adjusted trial balance at December 31, 2021 for, Meilleur Merchants. The list
The following is a list of the accounts and balances taken from the adjusted trial balance at December 31, 2021 for, Meilleur Merchants. The list of accounts is in alphabetical order. All accounts have normal balances. Meilleur uses a periodic inventory system and the earnings approach to recognize revenue.
Account | Balance Dec. 31 | ||||
1 | Accounts payable | $15,000 | |||
2 | Accounts receivable | 30,000 | |||
3 | Accumulated depreciationbuilding | 15,500 | |||
4 | Accumulated depreciationequipment | 10,000 | |||
5 | Advertising expense | 4,300 | |||
6 | Building | 84,600 | |||
7 | S. Meilleur, capital | 75,000 | |||
8 | S. Meilleur, drawings | 28,300 | |||
9 | Cash | 10,190 | |||
10 | Depreciation expense | 5,700 | |||
11 | Equipment | 24,500 | |||
12 | Freight in | 3,400 | |||
13 | Freight out | 630 | |||
14 | Insurance expense | 1,150 | |||
15 | Interest expense | 1,720 | |||
16 | Interest revenue | 1,440 | |||
17 | Land | 12,000 | |||
18 | Merchandise inventory, beginning | 90,200 | |||
19 | Mortgage payable | 57,600 | |||
20 | Prepaid insurance | 2,100 | |||
21 | Property tax expense | 1,500 | |||
22 | Property taxes payable | 600 | |||
23 | Purchase discounts | 6,300 | |||
24 | Purchase returns and allowances | 14,600 | |||
25 | Purchases | 267,900 | |||
26 | Rent revenue | 1,600 | |||
27 | Salaries expense | 41,600 | |||
28 | Salaries payable | 650 | |||
29 | Sales | 424,200 | |||
30 | Sales discounts | 15,500 | |||
31 | Sales returns and allowances | 18,000 | |||
32 | Unearned revenue | 23,000 | |||
33 | Utilities expense | 2,200 |
Additional information: According to the year-end physical count, the merchandise inventory had a balance of $104,000. Prepare a multiple-step income statement for Meilleur Merchants for the year ended December 31, 2021.
MEILLEUR MERCHANTS Income Statement For the Year Ended December 31, 2021 , Sales revenues Sales Less Sales Returns and Allowances Sales Discounts Net Sales Cost of Goods Sold Purchase Discounts Less LLL Home more LE A NO IN ll
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