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	Debit
Cash	$45,750
Accounts receivable	92,000
Inventory	84,400
Prepaid insurance	7,200
Office supplies	4,800
Furniture & fixtures	28,000
Accumulated Depreciation - Furn. & Fixtures	10,800
Delivery equipment	70,000
Accumulated depreciation - delivery equip.	24,400
Accounts payable	69,400
Long-term notes payable	30,000
Common stock	125,000
Retained earnings	42,000
Sales revenue	1,165,000
Cost of goods sold	822,200
Utilities Expense	5,600
Salaries Expense	108,000
Delivery Expense	36,800
Advertising Expense	28,200
Rent Expense	30,000
Office Salaries Expense	72,000
Income tax expense During the year, the accounting department prepared monthly statements but no adjusting entries were made in the journals and ledgers. Data for the year-end procedures are as follows: Prepaid insurance, December 31 $2,600 Depreciation expense on furniture and fix for year 3,000 Depreciation expense on delivery equip for the year 10,000 Salaries payable, December 31 2,800 Office Supplies on hand, December 31 1,800	12,000
b. Prepare a multi-step income statement for the year. OREGON DISTRIBUTORS Income Statement For the Year Ended December 31 Sales Revenue $1,165,000 Cost of Goods Sold 822,200 Gross profit on sales 342,800 Operating expenses Selling, General and Administrative Expense Income before income taxes Income Tax Expense 12,000 Net Income 822,200

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