Using the information provide:. Prepare the following: 1. Income Statement (Multiple-Step)

Adjusted Trial Balance December 31, 2018 Debit Credit Cash 522,000 Accounts Receivable 680,000 Allowance for Doubtful Accounts 24,000 Notes Receivable 15,000 Supplies 6,000 X1 Inventory, 1/1/18 1, 025,000 Equipment 1,850,000 Accumulated Deperciation - Equipment 410,000 Building 850,000 Accumulated Deperciation - Building 360,000 Land 250,000 Accounts Payable 445,000 Salaries and Wages Payable 16,000 Notes Payable, due June 15, 2019 110,000 Mortgage Payable 990,000 Common Stock Par $ 0.05 10,000 APIC 1,990,000 Retained Earnings 250,000 Dividends Declared - Common $ 75,000 Sales Revenue 2,400,000 Sales Discounts 25,000 Sales Returns and Allowances 85,000 X2 Purchases 1, 005,000 X3 Purchase Discounts 5,000 X4 Freight In 14,000 Selling Expenses 235,000 Administrative Expenses 210,000 Rent Revenue 12,000 Income Tax Expense S 275,000 Gain on Sale of Land 100,000 7,122,000 $ 7,122,000