$\backslash$begin$\{$tabular$\}\{|$l$|$l$|\}$

$\backslash$hline Name: & Zane knell $\backslash \backslash$

$\backslash$hline Your score: & $\backslash (0\backslash \%\backslash )\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{1\}\{|$c$|\}\{$ The $\}\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

The trial balance of the Zane Knell Company as of December $31,2025$ is presented below. Prepare a multiple$-$step income statement for the year ended $($date of$),$ December $31,2025.$ Every yellow cell requires either an account title or a dollar amount. Use the dropdown list to select the proper account titles. Enter a formula for all dollar amounts.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$c$|\}\{$Zane Knell Company Trial Balance$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$c$|\}\{$December $31,2025\}\backslash \backslash$

$\backslash$hline & Debit & Credit $\backslash \backslash$

$\backslash$hline Cash & $\backslash$$$19,500$ & $\backslash \backslash$

$\backslash$hline Accounts receivable & $38,000$ & $\backslash \backslash$

$\backslash$hline Merchandise inventory & $72,500$ & $\backslash \backslash$

$\backslash$hline Store supplies & $4,000$ & $\backslash \backslash$

$\backslash$hline Store Equipment & $96,000$ & $\backslash \backslash$

$\backslash$hline Accumulated depreciation & & $\backslash$$$29,000\backslash \backslash$

$\backslash$hline Accounts payable & & $30,000\backslash \backslash$

$\backslash$hline Salaries payable & & $12,000\backslash \backslash$

$\backslash$hline Common stock & & $136,800\backslash \backslash$

$\backslash$hline Dividends & $60,000$ & $\backslash \backslash$

$\backslash$hline Sales & & $425,000\backslash \backslash$

$\backslash$hline Sales discounts & $7,000$ & $\backslash \backslash$

$\backslash$hline Sales returns and allowances & $21,300$ & $\backslash \backslash$

$\backslash$hline Cost of goods sold & $149,000$ & $\backslash \backslash$

$\backslash$hline Depreciation expense $-$ Store equip. & $14,500$ & $\backslash \backslash$

$\backslash$hline Sales salaries expense & $29,800$ & $\backslash \backslash$

$\backslash$hline Office salaries expense & $36,500$ & $\backslash \backslash$

$\backslash$hline Insurance expense & $13,500$ & $\backslash \backslash$

$\backslash$hline Rent expense $-$ Store & $19,500$ & $\backslash \backslash$

$\backslash$hline Rent expense office & $9,500$ & $\backslash \backslash$

$\backslash$hline Store supplies expense & $8,300$ & $\backslash \backslash$

$\backslash$hline Advertising expense & $33,900$ & $\backslash \backslash$

$\backslash$hline Totals & $\backslash$$$632,800$ & $\backslash$$$632,800\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Prepare a multiple$-$step income statement for Zane Knell Company for the year ended December $31,2025.$ Remember that selling expenses target the customer, and are expected to generate additional sales. Administrative expenses are not expected to generate additional sales.

Zane Knell Company

Income Statement

Text

Trial Balance

Prepare a multiple$-$step income statement for Zane Knell Company for the year ended December $31,2025.$ Remember that selling expenses target the customer, and are expected to generate additional sales. Administrative expenses are not expected to generate additional sales.

Dperating expenses

Selling expenses

Total selling expenses

General and administrative expenses