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

question 43

Essay

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

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Definitions:

Statement of Financial Position

A financial report that details an organization's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Carrying Amount

Carrying Amount is the value at which an asset is recognized in the balance sheet after accounting for depreciation, amortization, or impairment losses.

Accounts Receivable

Represents amounts due from customers for credit sales, expected to be received in the near future.

Managing

The process of planning, organizing, leading, and controlling resources to achieve organizational objectives efficiently and effectively.