Information from the December 31, 2020, year-end unadjusted trial balance of Woodstock Store is as follows:

Additional information:a. The balance on January 1, 2020, in the Store Supplies account was $480. During the year, $1,235 of store supplies were purchased and debited to the Store Supplies account. A physical count on December 31, 2020, shows an ending balance of $180.

b. The balance on January 1, 2020, in the Office Supplies account was $50. Office supplies of $595 were purchased in 2020 and added to the Office Supplies account. An examination of the office supplies at yearend revealed that $590 had been used.

c. The balance in the Prepaid Insurance account represents a policy purchased on September 1, 2020; it was valid for 12 months from that date.

d. The store equipment was originally estimated to have a useful life of 12 years and a residual value of $3,615.

e. When the office equipment was purchased, it was estimated that it would last four years and have no residual value.

f. Ending merchandise inventory, $29,000.

Required

Analyze and determine the impact of the adjustments from (a) to (f) on the unadjusted trial balance numbers. Prepare a classified multiple-step income statement like Exhibit 5A.2 using your adjusted trial balance numbers.

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Debit Credit $ 3,500 Cash. Merchandise inventory. 31,400 Store supplies. Office supplies. Prepaid insurance. 1,715 645 3,960 Store equipment. 57,615 $ 6,750 Accumulated depreciation, store equipment Office equipment. 13,100 Accumulated depreciation, office equipment. Accounts payable. 6,550 4,000 Zen Woodstock, capital. 52,000 Zen Woodstock, withdrawals. 31,500 Rental revenue. 14,600 Sales 501,520 Sales returns and allowances. 2,915 5,190 Sales discounts.. Purchases. 331,315 Purchase returns and allowances. 2,140 Purchase discounts. Transportation-in. 4,725 3,690 Sales salaries expense 34,710 Rent expense, selling space. Advertising expense. Store supplies expense. 24,000 6,400 -0- -0- Depreciation expense, store equipment Office salaries expense. 27,630 Rent expense, office space Office supplies expense. 13,000 -0- Insurance expense -0- -0- Depreciation expense, office equipment $592,285 $592,285 Totals.