Question $1$ Part $1$: Income Statement Preparation Mountain Peak Retailers has the following financial information for the year ended December $31,2024$: $-$ Gross Sales: $\backslash (\backslash$$ $925,850\backslash )-$ Sales Returns $\backslash$& Allowances: $\backslash (\backslash$$ $45,320\backslash )-$ Cost of Goods Sold: $\backslash (\backslash$$ $495,600\backslash )-$ Rent Expense: $\backslash (\backslash$$ $78,900\backslash )-$ Utilities Expense: $\backslash (\backslash$$ $25,450\backslash )-$ Salaries Expense: $\backslash (\backslash$$ $95,750\backslash )-$ Interest Expense: $\backslash (\backslash$$ $2,300\backslash )-$ Depreciation Expense: $\backslash (\backslash$$ $12,500\backslash )-$ Income Tax Expense: $\backslash (\backslash$$ $42,500\backslash )$ Required: Prepare a complete multi$-$step income statement. $($Format: for positive numbers, enter whole dollars and no cents, e$.$g$.15,829)($Format: for negative numbers, enter minus sign, whole dollars and no cents, e$.$g$.-15,829)$ Mountain Peak Retailers Income Statement For the Year Ended December $31,2024$ Gross Sales $\backslash (\backslash$$ $\backslash )$ Less: Sales Returns $\backslash$& Allowances $\backslash$$ Net Sales $\backslash$$ Less: Cost of Goods Sold $\backslash$$ Gross Profit $\backslash$$ Operating Expenses: Rent Expense $\backslash$$ Utilities Expense $\backslash$$ Salaries Expense $\backslash$$ Depreciation Expense $\backslash (\backslash \{\backslash )$ Total Operating Expenses $\backslash$$ Operating Income $\backslash$$ Other Expenses: Interest Expense $$ Income Before Taxes $\backslash$$ Income Tax Expense f Net Income $\backslash (\backslash$$ $\backslash )$

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Question $1$

Part $1$: Income Statement Preparation

Mountain Peak Retailers has the following financial information for the year ended December $31,2024$:

Gross Sales: $$925,850$

Sales Returns & Allowances: $$45,320$

Cost of Goods Soldt $$495,600$

Rent Expense: $$78,900$

Utilities Expense: $$25,450$

Salaries Expense: $$95,750$

Interest Expense: $$2,300$

Depreciation Expense: $$12,500$

Income Tax Expense: $$42,500$

Required:

Prepare a complete multi$-$step income statement.

$($Format: for positive numbers, enter whole dollars and no cents, eg$.15,929)$

$($Format: for negative numbers, enter minus sign, whole dollars and no cents, e$.$g$.-15,829)$

Mountain Peak Retailers

Income Statement

For the Year Ended December $31,2024$

Gross Sales $

Less: Sales Returns & Allowances $

Net Sales $

Less: Cost of Goods Sold $$

Gross Profit $$

Operating Expenses:

Rent Expense $4$

Utilities Expense $

Salaries Expense $

Depreciation Expense $

Total Operating Expenses $

Operating Income $

Other Expenses:

Interest Expense $

Income Before Taxes $

Income Tax Expense $

Net Income $

Part $2$: Balance Shect Construction

Mountain Peak Retailers has the following account balances as of December $31,2024$:

Cash: $$85,000$

Accounts Receivable: $$62,500$

Irventory: $$145,000$

Equipment: $$225,000$

Accumulated Depreciation: $$75,000$

Land: $$350,000$

Accounts Payable: $$45,000$

Notes Payable $($due in $5$ years$)$: $$200,000$

Wages Payable: $$28,500$

Common Stock: $$400,000$

Retained Earnings: beginning balance $$95,000($Nate: Retained Earnings will need to be adjusted for net income and dividends$)$

Dividencs paid during $2024$: $$25,000$

Required:

Prepare a classified balance sheet

$($Format: for positive numbers, enter whole dollars and no cents, eg $15,829)$

$($Format: for negative numbers, enter minus sign, whole dollars and no cents, e$.$g$.-15,829)$

Mountain Peak Retailers

Balance Sheet

As of December $31,2024$

ASSETS

Current Assets:

Cash $$

Accounts Receivable $\{$

Inventory $$

Total Current Assets q

Non$-$current Assets:

Land:

Equipment $

Less: Accumulated Deprec. $\{$

Total Non$-$current Assets :

Total Assets $

LLABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts Payable:

Wages Payable $

Total Current Liabilities $(4)/()$

Non$-$current Liablities:

Notes Payable &

Total Liabilities $

Stockholders' Equity:

Common Stock :

Retained Earnings $4$

Total Stockholders' Equity $4$

Total Liabilities and Stocloholders' Equity $5$

Question $3$

Part $3$: Statement of Owner's Equity

Using the information from Parts $1$ and $2,$ prepare a Statement of Owner's Equity for Mountain Peak Retailers for the year ended December $31,2024.$

Required:

Prepare a complete Statement of Owner's Equity.

$($Format: for positive numbers, enter whole dollars and no cents, eg $15,929)$

$($Format: for negative numbers, enter minus sign, whole dollors and no cents, e$.$g$.-15,829)$

Mountain Peak Retailers

Statement of Owner's Equity

For the Year Ended December $31,2024$

Common Stock:

Beginning Balance!

Changes During Year $$

Ending Balonce $$

Retained Earning:

Beginning Balance!

Add: Net Income $$

Less: Dividends $