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

question 108

Essay

Refer to the following trial balance.
$$\begin{array} { | l | r | r | } \hline & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 15,000 & \\\hline \text { Accounts Receivable } & 42,000 & \\\hline \text { Merchandise Inventory } & 60,000 & \\\hline \text { Supplies } & 15,000 & \\\hline \text { Land } & 300,000 & \\\hline \text { Accounts Payable } & & \$ 3,000 \\\hline \text { Notes Payable } & & 25,000 \\\hline \text { Smith, Capital } & & 326,000 \\\hline \text { Smith, Withdrawals } & 3,000 & \\\hline \text { Sales Revenues } & & 480,000 \\\hline \text { Sales Returns and Allowances } & 6,000 & \\\hline \text { Sales Discounts } & 9,000 & \\\hline \text { Cost of Goods Sold } & 240,000 & \\\hline \text { Salary Expense } & 15,000 & \\\hline \text { Utility Expense } & 69,000 \\\hline \text { Rent Expense } & 54,000 \\\hline \text { Interest Expense } & \underline { 6,000 } \\\hline \text { Totals } & \$ 834,000&\$834,000 \\\hline\end{array}$$ Prepare a multi-step income statement:

---

Definitions:

Succeed

Achieving a desired goal, outcome, or status after effort, skill, or courage has been applied.

Attempt

An effort to achieve or complete a difficult task or action.

Polygraph Test

A lie detection examination that measures physiological responses, such as blood pressure, pulse, and perspiration, to determine truthfulness.

True Statements

Assertions that are in accordance with facts or reality, accurately reflecting what is the case.