Use the trial balance as of December 31, 2020 to create a multistep income statement and a classified balance sheet.

Helpful Information:

• Insurance was prepaid 5 months in advance
• All payroll taxes will be paid within the next quarter
• Unearned Revenue is for an event that will take place in October of 2021
• The Retained Earnings balance given does not account for income/loss that has occurred in 2020

Income Statement

	For the year ended December 31, 2020
Sales Revenue	550,000
COGS	175,000
Gross Profit	375,000
Operating Expenses
Insurance Expense	9,600
Rent Expense	60,000
Salaries and Wages Expense	80,000
Travel Expense	4,500
Utilities Expense	12,000
Total Operating Expenses	166,100
Income from Operations	208,900
Income Tax Expense	14,000
Interest Expense	1,200
Net Income	193,700

Balance Sheet

December 31, 2020
Current Assets				Current Liabilities
Cash		120,000		Accounts Payable	45,000
Supplies	3,500			Unemployment Taxes Payable	8,500
Accounts Receivable	17,000			Withheld Income Taxes Payable	12,000
Inventory		62,100		FICA Payable	14,000
Notes Receivable (LT)	40,000			Unearned Revenue	4,000
Allowance for Doubtful Accounts		16,000
Prepaid Insurance	1,500
				Total Current Liabilities	83,500
Total Current Assets		198,100		Notes Payable (LT)	25,000
Equipment	120,000
Land	100,000			Total Liabilities	108,500
Accumulated Depreciation		14,000
				Stockholder's Equity
				Common Stock	25,000
				Retained Earnings	121,300
				Additional Paid in Capital	60,000
Total Assets		212,100		Treasury Stock	60,000
				Total Stockholder's Equity	266,300
				Total Liabilities & SE	374,800

This is my attempt on a HW question, I know its not all correct so I would appreciate a correction

Credit Debit 17,000 14,000 1,600 Accounts Receivable Accumulated Depreciation Allowance for Doubtful Accounts Cash Equipment Inventory Land Notes Receivable (Long-term) Prepaid Insurance Supplies COGS Income Tax Expense Insurance Expense Interest Expense Rent Expense Salaries and Wages Expense Travel Expense Utilities Expense Accounts Payable FICA Payable Notes Payable (LT) Unearned Revenue Unemployment Taxes Payable Withheld Income Taxes Payable Additional Paid in Capital Common Stock Retained Earnings Treasury Stock Sales Revenue Totals 120,000 120,000 62,100 100,000 40,000 1,500 3,500 175,000 14,000 9,600 1,200 60,000 80,000 4,500 12,000 45,000 14,000 25,000 4,000 8,500 12,000 60,000 25,000 121,300 60,000 550,000 880,400 880,400