Whispering Winds Company recently hired a new accountant whose first task was to prepare the financial statements for the year ended December 31, 2021. The following is what he produced: WHISPERING WINDS COMPANY Income Statement December 31, 2021 Sales $396,000 $5,600 3,400 9,000 387,000 Less: Unearned revenue Purchase discounts Total revenue Cost of goods sold Purchases Less: Purchase returns and allowances Net purchases Add: Sales returns and allowances Cost of goods available for sale Add: Freight out Cost of selling merchandise Gross profit margin 231,500 4,000 235,500 7,400 242.900 9,600 252,500 134,500 ZOZ,DUU 134,500 4,500 10,600 2,500 17,900 42,100 COST OT sering merchanaise Gross profit margin Operating expenses Freight in Insurance expense Interest expense Rent expense Salaries expense Total operating expenses Profit margin Other revenues Interest revenue Investment by owner Other expenses Depreciation expense Drawings by owner Profit from operations 77,600 56.900 $1,400 3,400 4,800 7,500 48,500 56,000 (51,200) $5.700 $16,800 7,900 29,900 24,100 WHISPERING WINDS COMPANY Balance Sheet Year Ended December 31, 2021 Assets Cash Accounts receivable Merchandise inventory, January 1, 2021 Merchandise inventory, December 31, 2021 Equipment $75,000 Less: loan payable (for equipment 49,000 purchase) Total assets Liabilities and Owner's Equity Long-term investment Accumulated depreciation-equipment Sales discounts Total liabilities Owner's equity 26,000 $104,700 $49,000 22,500 2.900 74,400 30,300 74,400 TOLD TILES Owner's equity Total liabilities and owner's equity 30,300 $104,700 The owner of the company, Lily Oliver, is confused by the statements and has asked you for your help. She doesn't understand how, if her Owner's Capital account was $78,300 at December 31, 2020, owner's equity is now only $30,300. The accountant tells you that $30,300 must be correct because the balance sheet is balanced. The accountant also tells you that he didn't prepare a statement of owner's equity because it is an optional statement. You are relieved to find out that, even though there are errors in the statements, the amounts used from the accounts in the general ledger are the correct amounts. (a1) Prepare the correct multiple-step income statement. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) WHISPERING WINDS COMPANY Income Statement $ $ $