Comprehensive Problem 2 Part 8: You must complete parts 1, 2, 3, 4, 6 and 7 before attempting to complete part 8. Note: part 5 is optional. 1. Prepare a multiple-step income statement. Palisade Creek Co. Income Statement For the Year Ended May 31, 2016 Sales $$ 5,069,000 x Cost of goods sold 2,823,000 x $ Gross profit 2,246,000 x Operating Expenses: Selling expenses: Sales salaries expense Advertising expense $$ Store supplies expense Selling expenses: Sales salaries expense $$ Advertising expense Store supplies expense v Total selling expenses $$ 958,400 X Administrative expenses: $ $ Total administrative expenses 473,600 X Total operating expenses $ $ Net Income 2. Prepare a statement of stockholders' equity. Assume that additional common stock of $10,000 was issued in Jan Palisade Creek Co. Statement of Stockholders' Equity For the Year Ended May 31, 2016 Common Stock Retained Earnings $$ 90,000 $ 585,300 $$ Total 675,300 Balances, June 1, 2015 $ 10,000 $ Issued common stock 10,000 S Net income 814,000 X 5 814,000 X 135,000 135,000 Dividends 100,000 Balances, May 31, 2016 $$ $$ 1,264,300 X $$ 1,364,300 X 3. Prepare a balance sheet. Palisade Creek Co. Balance Sheet May 31, 2016 Assets Current assets: Cash $$ Accounts receivable Inventory Estimated returns inventory Prepaid insurance Store supplies Total current assets $$ 998,100 X Property, plant, and equipment: Store equipment Accumulated depreciation-store equipment $$ Total property, plant, and equipment Total assets $ $ Total assets $ Liabilities Current liabilities: Accounts payable $$ Salaries payable Customers refunds payable Total liabilities Stockholders' Equity Common stock $$ Retained earnings