Paulson's Pet Store completed the work sheet on page 600 for the year ended December 31, 20--. Owner's equity as of January 1, 20--, was $21,900. The current portion of Mortgage Payable is $500.

REQUIRED

1. Prepare a multiple-step income statement.

2. Prepare a statement of owner's equity.

3. Prepare a balancesheet.

Paulson's Pet Store Work Sheet For Year Ended December 31, 20 -- A D AL BALANCE SALANCE T COME STAIMENT AL BALANCE ACCOUNT TE CEDT DEDT CREDIT CHEOT 15 860 00 2340 00 15 86 0 00 15 8 60 00 Cash 2340 00 Accounts Racevable 2340 00| 15 000 00 80 0 00| 600 00 500001 (b) 16 50 0 00 (a) 15 0 0 0 00 16 500 00 600 00 450 00 5d00 00 Morchandiso Invontory 16 500 00 600 00 2 00 00 Supplies (C) (a 150 00 450 00 BOUEJNSU Dedeud 5000 00 Equipment Accum. Depr. Equipment AcCounts Payable 450 00 4 89 0 00 450 00 900 00 900 00 (e) 489000 4890 00 300 00 8 60 00 40 00 00 23 00 00 300 00 860 00 4000 00 23 9 00 00 300 00 Wages Payable Sales Tax Payable 860 00 4 000 00 23 90 0 00 Mortgage Payable B. Paulson, Capital B. Paulson, Drawing ncome Summary 1200 00 1200 00 (a 15 0 0 0 00 D) 16 5 00 00 15 0doo 00 16 5 00 00 15 00 0 00 16 500 00 1200 00 71 510 00 71 5 10 00 71 510 00 Sales 1340 0 40 6 60 00 Sales Retums and Allowancas 1340 00 40 6 6 0 00 1340 00 40 66 0 00 Purchases 1020 00 80 0 00 1020 00 800 00 1020 00 Purchases Returns and Alowarces 800 00 Purchases Discounts Freight-in 400 00 22 300 00 300 00 400 00 22 0 0 oo 300 00 200 00 68 4 00 710 00 150 00 450 00 400 00 22 600 00 30 0,00 200 00 300 00 Wages Expansa Advertising Expense 200 00 Supples Expense Tolephono Expense Ubutles Expense 684 00 716 00 68 4 00 716 00 150 00 150 00 450 00 150 00 80 00 Insurance Expensa Depr. Experise Equipment Miscollanccus Exponse 45 0 00 150 00 150 00 80 00 107 430 00 107 43 0 00 interest Expense 80 00 32 600 00 124 680 00124 6 80 00 82 730 00 89 830 00 41 950 00 34 850 00 7100 00 32 60 0 00 7100 00 89 830 00 89 830 00 41 9 50 00 41 9 50 00 Not income