Refer to the Following Trial Balance Please Prepare a Multi-Step Income Statement

question 111

Essay

Refer to the following trial balance. $$\begin{array} { | l | r | r | } \hline & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 5,000 & \\\hline \text { Accounts receivable } & 14,000 & \\\hline \text { Inventory } & 20,000 & \\\hline \text { Supp lies } & 5,000 & \\\hline \text { Land } & 100,000 & \\\hline \text { Accounts payable } & & \$ 3,000 \\\hline \text { Notes payable } & & 25,000 \\\hline \text { Capital } & & 90,000 \\\hline \text { Drawing } & 1,000 & \\\hline \text { Sales revenues } & & 160,000 \\\hline \text { Sales returns and allowances } & 2,000 & \\\hline \text { Sales discounts } & 3,000 & \\\hline \text { Cost of goods sold } & 80,000 & \\\hline \text { Salary expense } & 5,000 & \\\hline \text { Utility expense } & 23,000 & \\\hline \text { Rent expense } & 18,000 \\\hline \text { Interest expense } & 2,000 \\\hline \text { Totals } & \$ 278,000 & \$ 278,000 \\\hline\end{array}$$ Please prepare a multi-step income statement:

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Definitions:

Average Product

The output per unit of input, such as the quantity of goods produced per worker.

Law Of Diminishing Returns

The principle that as successive increments of a variable resource are added to a fixed resource, the marginal product of the variable resource will eventually decrease.

Resource Inputs

The basic materials and components required in the production process to create goods or services.

Product Outputs

Product outputs refer to the goods or services produced as a result of manufacturing processes or business activities.