In proper order and form prepare the companys multistep inco

ashion Square Accen djusted trial balance follows ts is an upscale furniture store in Scottsdale. Its Fashion Square Accents Adjusted Trial Balance December 31, 20xx Debit Credit $ 7,000 13,000 60,000 1,500 45, 600 Cash Accounts Receivable Inventory Supplies Equipment Accumulated Depreciation, Equip Accounts Payable Salaries Payable Owner\' s Capital Owner\' s Withdrawals Sales Revenue Interest Revenue Sales Discounts Sales Returns&Allowances; Cost of Goods Sold Depreciation Expense, Store Equip Depreciation Expense, Office Equip Sales Salaries Expense Office Salaries Expense Insurance Expense Rent Expense (70% store, 30% Office) Interest Expense Store Supplies Expense Advertising Expense Total 16,600 9,000 2,000 10,000 343,250 2,000 5,000 6,000 159,900 4,100 1,600 27,000 34,000 11,000 24,000 1,000 5,750 31,400 $447,850 $447,850

Solution

Fashion Square Accents Income Statement For the Period Ending December 31, 20XX Sale Revenue 343250 Less- Sales Discounts 5000            - Sales Returns & Allowances 6000 11000 Net sales 332250 Cost of goods sold 159900 Gross profit 172350 Depreciation Expense, Store Equipment 4100 Depreciation Expense, Office Equipment 1600 Sales Salaries Expense 27000 Office Salaries Expense 34000 Insurance Expense 11000 Rent Expense (70% Store, 30% Office) 24000 Store Supplies Expense 5750 Advertising Expense 31400 Total Operating Expenses 138850 Income from Operation 33500 Less- Interest expense 1000 Net Income 32500