The following information is from the unadjusted trial balance for Journey's Knd Company prepared at October 31, 2014, the end of the fiscal year:

Rent and salaries expense are equally divided between the selling and administrative functions. Journey's End Company uses a perpetual inventory system
Required
1. Copy the unadjusted trial balance on a work sheet form and complete the work sheet using the following information:
a. Store supplies on hand at year-end amount to $6,600.
b. The balance in the Prepaid Insurance account represents 12 months of insurance that was in effect starting November 1, 2013.
c. The store equipment was purchased several years ago, when it was estimated to have a 20-year useful life and a resale value at the end of its life of $47,600.
d. A physical count of the ending merchandise inventory shows $29,800 of goods on hand.
2. Prepare a multiple-step income statement (see Exhibit 5.16).
Analysis Component: Explain why Interest Expense is shown under Other revenues and expenses on the multiple-step income statement.

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Debit Credit Cashc. Merchandise inventory.41,500 Store supplies16,700 Prepaid insurance Store equipment.167,600 Accumulated depreciation, store equipment.. Accounts payabl.. Dallas End, capital Dallas End, withdrawals.. 12,000 Sales Sales discounts..jresa Sales returns and allowances..s8,000 Cost of goods sold.. Depreciation expense, store equipment... Salaries expense . 144,000 Interest expense... Insurance expens Rent expens.56,000 Store supplies expense.. Advertising expense Totals$657,800 $657,800 12,800 5,700 60,000 34,700 172,100 .. 391,000 3,500 149,600 800 39,600 "… … …