An Adjusted Trial Balance of Meadows Company as of December

question 132

Essay

An adjusted trial balance of Meadows Company as of December 31, 2019 is given below. Prepare a multi-step income statement for the year for the company.
$\begin{array}{|l|r|r|}\hline& \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 15,000 & \\\hline \text { Accounts Receivable } & 42,000 & \\\hline \text { Merchandise Inventory } & 60,000 & \\\hline \text { Supplies } & 15,000 & \\\hline \text { Land } & 300,000 & \\\hline \text { Accounts Payable } & & \$ 3,000 \\\hline \text { Notes Payable } & & 25,000 \\\hline \text { Common Stock } & & 300,000 \\\hline \text { Retained Earnings } & &26,000 \\\hline \text { Dividends } & 3,000 \\\hline \text { Sales Revenue } && 465,000 \\\hline \text { Cost of Goods Sold } & 240,000 & \\\hline \text { Salaries Expense } & 15,000 & \\\hline \text { Utilities Expense } & 69,000 & \\\hline \text { Rent Expense } & 54,000& \\\hline \text { Interest Expense } &6,000 & \\\hline \text { Totals } &\$819,000 &\$819,000\\\hline\end{array}$

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Definitions:

Job Shop

A manufacturing operation that produces small batches of customized products, each requiring a unique set-up and workflow.

Repetitive Process

A manufacturing process in which the same product or service is produced in a sequence of steps repeatedly.

Production Technology

The body of methods, processes, and equipment used to produce goods and services efficiently.

Service Labor

The work performed by individuals or employees in the service sector as part of delivering intangible goods and customer experiences.