XYZ Corporation, which purchases outdoor clothing and equipment and resells them, began business as a merchandising...

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XYZ Corporation, which purchases outdoor clothing and equipment and resells them, began business as a merchandising corporation on January 1, 2022. At the end of January, the company prepared the following adjusted trial balance. Required: (12 points) Using the tables on the following pages, prepare a multiple-step Income Statement and a Statement of Retained Earnings for the month ended January 31, 2022, and a classified Balance Sheet as of January 31, 2022, all in good form Sierra Corporation Adjusted Trial Balance As of January 31, 2022 Debit Cash Accounts receivable Merchandise inventory Prepaid insurance Prepaid rent Office equipment Sales equipment Accumulated depreciation Accounts payable Salaries payable Interest payable Income taxes payable Long-term notes payable, all due in 2025 Common stock Dividends Retained earnings, January 1, 2023 Sales Cost of goods sold Depreciation expense - administrative Depreciation expense - sales equipment Insurance expense - administrative Insurance expense - sales office Income tax expense Interest expense Rent expense-corporate office Rent expense - sales building Sales salaries expense $ 106,700 22,500 24,100 15,400 Page 1 of 3 14,150 16,000 46,000 330 27,750 245 480 400 375 300 90 3,350 2,750 14,300 Credit $ 725 51,885 8,750 90 300 21,000 161,000 76,045 Administrative salaries expense Utilities expense - 60% admin, 40% sales Total 22,840 1,735 $319,795 Page 2 of 3 $319.795 XYZ Corporation, which purchases outdoor clothing and equipment and resells them, began business as a merchandising corporation on January 1, 2022. At the end of January, the company prepared the following adjusted trial balance. Required: (12 points) Using the tables on the following pages, prepare a multiple-step Income Statement and a Statement of Retained Earnings for the month ended January 31, 2022, and a classified Balance Sheet as of January 31, 2022, all in good form Sierra Corporation Adjusted Trial Balance As of January 31, 2022 Debit Cash Accounts receivable Merchandise inventory Prepaid insurance Prepaid rent Office equipment Sales equipment Accumulated depreciation Accounts payable Salaries payable Interest payable Income taxes payable Long-term notes payable, all due in 2025 Common stock Dividends Retained earnings, January 1, 2023 Sales Cost of goods sold Depreciation expense - administrative Depreciation expense - sales equipment Insurance expense - administrative Insurance expense - sales office Income tax expense Interest expense Rent expense-corporate office Rent expense - sales building Sales salaries expense $ 106,700 22,500 24,100 15,400 Page 1 of 3 14,150 16,000 46,000 330 27,750 245 480 400 375 300 90 3,350 2,750 14,300 Credit $ 725 51,885 8,750 90 300 21,000 161,000 76,045 Administrative salaries expense Utilities expense - 60% admin, 40% sales Total 22,840 1,735 $319,795 Page 2 of 3 $319.795

Answer rating: 100% (QA)

1 Multi Step Income Statement for the year 2022 XYZ Corporation Multi Step Income Statemnet for the ... View the full answer