Murray mercantile completed the worksheet for the year"

"Murray's Mercantile completed the work sheet below for the year ended December 31, 20X1. Owner’s equity as of January 1, 20X1, was $5,000. 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 balance sheet."

      

Transcribed Image Text:

Adjusted Trial Balance Debit Trial Balance Adjustments Income Statement Balance Sheet Account Title Debit Credit Debit Credit Credit Debit Credit Debit Credit Cash 1,020 2,640 4,220 1,020 2,640 4,430 1,020 2,640 4,430 Accounts Receivable Merchandise Inventory 4,430 4,220 Supplies Equipment Accum. Depr.-Equipment Accounts Payable Wages Payable Mortgage Payable Murray, Capital Murray, Drawing Income Summary 440 90 350 350 3,800 3,800 3,800 550 90 640 640 3,660 3,660 3,660 40 40 40 1,200 5,400 1,200 5,400 1,200 5,400 680 680 680 4,220 4,430 4,220 4,430 4,220 4,430 14,180 Sales 14,180 14,180 Sales Returns and Allowances 130 130 130 Purchases Purchases Returns and 8,130 8,130 8,130 Allowances Purchases Discounts Freight-In Wages Expense Advertising Expense Supplies Expense Utilities Expense Depr. Expense-Equipment Interest Expense 290 290 290 150 150 150 60 60 60 4,130 40 4,170 4,170 40 40 40 90 90 90 130 130 130 90 90 90 10 10 10 25,430 25,430 8,870 8,870 29,990 29,990 17,070 19,050 12,920 10,940 1,980 12,920 Net Income 1,980 19,050 19,050 12,920 Adjusted Trial Balance Debit Trial Balance Adjustments Income Statement Balance Sheet Account Title Debit Credit Debit Credit Credit Debit Credit Debit Credit Cash 1,020 2,640 4,220 1,020 2,640 4,430 1,020 2,640 4,430 Accounts Receivable Merchandise Inventory 4,430 4,220 Supplies Equipment Accum. Depr.-Equipment Accounts Payable Wages Payable Mortgage Payable Murray, Capital Murray, Drawing Income Summary 440 90 350 350 3,800 3,800 3,800 550 90 640 640 3,660 3,660 3,660 40 40 40 1,200 5,400 1,200 5,400 1,200 5,400 680 680 680 4,220 4,430 4,220 4,430 4,220 4,430 14,180 Sales 14,180 14,180 Sales Returns and Allowances 130 130 130 Purchases Purchases Returns and 8,130 8,130 8,130 Allowances Purchases Discounts Freight-In Wages Expense Advertising Expense Supplies Expense Utilities Expense Depr. Expense-Equipment Interest Expense 290 290 290 150 150 150 60 60 60 4,130 40 4,170 4,170 40 40 40 90 90 90 130 130 130 90 90 90 10 10 10 25,430 25,430 8,870 8,870 29,990 29,990 17,070 19,050 12,920 10,940 1,980 12,920 Net Income 1,980 19,050 19,050 12,920

Answer rating: 100% (QA)

Muttipde Step income Statemant Muneays Mexcartle Income sttenment ... View the full answer