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:

Behavioral Economists

Researchers who study how psychological, emotional, and social factors affect economic decision-making.

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Characterized by exactness and accuracy in expression or detail.

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Pertains to characteristics, systems, or processes that have evolved over time through natural selection and adaptation.

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Mental shortcuts or rules of thumb that ease the cognitive load of making a decision.