219 H D Auto Zoom : P4-10A. Multi-step Income Statement and Adjusting Entries The New England Trading Company, whose LO2 accounting year ends on December 31, had the following normal balances in its general ledger at De cember 31: $17,000 56,600 74.000 3,000 4,200 21,000 Cash. Accounts receivable Inventory.......... Prepaid insurance... Office supplies Furniture and fixtures... Accumulated depreciation furniture and fixtures....... Delivery equipment............ Accumulated depreciation delivery equipment ... Accounts payable.... Long-term notes payable ......... Common stock..... Retained earnings ................. Sales revenue..... Cost of goods sold ... Utilities expense......... Sales salaries expense.. Delivery expense. Advertising expense... Rent expense... . Office salaries expense ........ Income tax expenso $620,000 394.000 4,800 77,000 10,800 5,600 9,400 56,000 9,000 7,000 86.000 12,000 37,000 28.000 70,000 56,400 During the year, the accounting department prepared monthly statements but no adjusting entries were made in the journals and ledgers. Data for the year-end procedures are as follows: 1. Prepaid insurance, December 31, was $1,800. 2. Depreciation expense on furniture and fixtures for the year was $2.200. 3. Depreciation expense on delivery equipment for the year was $11,000. 4. Salaries payable, December 31 (51,900 sales and $1,200 office), was $3,100. 5. Unused office supplies on December 31 were $1,400. Required a. Record the necessary adjusting entries at December 31. b. Prepare a multi-step income statement for the year. Combine all the operating expenses into one line on the income statement for selling, general and administrative expenses