Problem 4: Income Statement Prepare a multiple-step income statement for Grant company from the following data for the year ended December 31, 2022. Sales, $925,000; cost of merchandise sold, $560,000; administrative expenses, $30,000; interest expense, $10,000; rent revenue, $20,000; sales returns and allowance, $55,000; selling expenses, $110,000. Solution Grant Company Income Statement For the Year Ended December 31, 2022 Revenue from sales: 1 1 Operating Expenses: Other income: Other expense:Problem 4: Adjusting Entries On January 1, the balance in the Merchandise Inventory was $183,000. At December 31, after a physical stock count, the firm determined that the ending merchandise inventory is $186,000. Show the adjusting journal entry under the Periodic Inventory System. Solution: (a) The Periodic Inventory system Journal Credit Date Debit Dec 31 Dec 31 (b) The Perpetual Inventory System On December 31, the balance in the Merchandise Inventory was $183,000. At December 31, after a physical stock count, the firm determined that the ending merchandise inventory is $186,000. Show the adjusting journal entry under the Perpetual Inventory system, Journal Date Debit Credit Dec 31