Problem 3 Financial Statement Preparation From the adjusted trial balance given below for the Grayson

Company, prepare a multiple-step income statement. It categorizes the following accounts as selling expenses: Sales Salaries Expense, Depreciation ExpenseStore Equipment, and Advertising Expense. It categorizes the remaining expenses as general and administrative.

Grayson Company
Adjusted Trial Balance
December 31
	Debit	Credit
Cash	$ 19,500
Accounts receivable	27,000
Merchandise inventory	38,000
Office supplies	1,200
Store equipment	80,000
Accumulated depreciationstore equipment		$ 25,000
Building	260,000
Accumulated depreciationbuilding		121,600
Accounts payable		28,500
Salaries payable		13,000
N. Grayson, Capital		169,900
N. Grayson, Withdrawals	45,000
Sales		450,000
Sales discounts	8,000
Sales returns and allowances	24,500
Cost of goods sold	210,000
Sales salaries expense	39,000
Depreciation expensestore equipment	16,000
Depreciation expensebuilding	24,000
Advertising expense	12,300
Office supplies expense	3,500
Totals	$ 808,000	$ 808,000