The following is information from Crystal Company?s adjusted trial balance at December 31, 2021:

Instructions

a. Prepare a single-step income statement for the year ended December 31, 2021.

b. Prepare closing entries and a post-closing trial balance.

Transcribed Image Text:

Debit Credit $ 75,700 Cash Notes receivable 100,000 70,000 450,000 Merchandise inventory Equipment Accumulated depreciation-equipment Unearned revenue $ 135,000 8,000 175,000 235,000 Notes payable L. Crystal, capital L. Crystal, drawings 150,000 10,000 24,000 1,980,000 Interest revenue Rent revenue Sales Advertising expense Cost of goods sold Depreciation expense Freight out Insurance expense 55,000 851,500 45,000 25,000 15,000 10,500 650,000 Interest expense Salaries expense Sales discounts 9,900 59,400 Sales returns and allowances $2,567,000 $2,567,000