uestion 14

1. From the adjusted trial balance for Brookstone Art Supplies, Inc. given below, prepare a multiple-step income statement in good form.

   Brookstone Art Supplies, Inc. Adjusted Trial Balance December 31
   	Debit	Credit
   Cash	$9,400
   Accounts receivable	25,000
   Merchandise inventory	36,000
   Office supplies	900
   Store equipment	75,000
   Accumulated depreciationstore equipment		$22,000
   Office equipment	60,000
   Accumulated depreciationoffice equipment		15,000
   Accounts payable		42,000
   Notes payable		10,000
   Common stock		1,000
   Retained earnings		109,700
   Dividends	48,000
   Sales		325,000
   Sales discounts	6,000
   Sales returns and allowances	16,500
   Cost of goods sold	195,000
   Selling expenses	32,500
   General and administrative expenses	19,800
   Interest expense	600
   Totals	$524,700	$524,700