You are to prepare a set of financial statements using the attached adjusted trial balance.

Larrys Food Mart is a company that sells merchandise and uses a perpetual inventory system. You are to prepare a multi-step income statement, a statement of retained earnings, and a balance sheet. If you do not prepare a multi-step income statement, you will receive a zero as a grade for the income statement.

Make sure you know the formulas to prepare these statements. The statements must be in good form (meaning all of your columns and headings have proper formatting, have all the correct headings and numbers). Your balance sheet must balance.

Only turn in a Multi-step income statement-meaning you will have:

Sales Revenue costs of goods sold = Gross profit.

Then subtract your Operating expenses to get Operating Income.

Then +/- Other Income and (Expenses) to = Net Income.

On your balance sheet, make sure you separate current assets and property, plant, and equipment, and current liabilities and long-term liabilities.

Your adjusted trial balance has a number for retained earnings so do not put a zero on the statement of retained earnings. Also, don't forget to list your new ending retained earnings on your balance sheet.

Larry's Food Mart Adjusted Trial Balance December 31, 2021| \begin{tabular}{lrr} & \multicolumn{2}{c}{ Balance } \\ Account Title & \multicolumn{1}{c}{ Debit } & Credit \\ Cash & $27,600 & \\ Accounts Receivable & 37,100 & \\ Merchandise Inventory & 105,800 & \\ Office Supplies & 1,300 & \\ Prepaid Rent & 1,000 & \\ Furniture & 66,500 & \\ Accumulated Depreciation & & $33,800 \\ Land & 26,000 & \\ Accounts Payable & & 7,300 \\ Salaries Payable & & 2,000 \\ Interest Payable & & 600 \\ Unearned Revenue & & 2,400 \\ Notes Payable, long term & & 108,000 \\ Common Stock & & 68,000 \\ Retained Earnings & & 22,200 \\ Dividends & 60,000 & \\ Sales Revenue & & 446,000 \\ Interest Revenue & & 15,000 \\ Cost of Goods Sold & 274,000 & \\ Salaries Expense & 84,700 & \\ Rent Expense & 7,700 & \\ Utilities Expense & 5,800 & \\ Depreciation Expense-Furniture & 2,700 & \\ Supplies Expense & 2,200 & \\ Interest Expense & 2,900 & \\ Total & $705,300 & $705,300 \\ \hline \end{tabular}