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Friday, September 24, 2021. in BE 157 The Outdoors Corporation, which sells camping and hiking equipment, had the following adjusted account balances on December 31, 2021. During 2021 the Outdoor Corporation sold its river tubing component of the business, the River Rafts company. The Outdoors Corporation correctly accounted for the sale as a discontinued operation. Account Debit Credit Accounts payable $ 13,700 Accounts receivable $ 43,000 Accumulated depreciation - equipment 30,500 Additional paid-in capital - common stock 87,000 Advertising expense 13,000 Allowance for doubtful accounts 3,000 Bad debt expense 1,500 Cash 24,600 Common stock, $5 par 65,000 Cost of goods sold 384,000 Depreciation expense (60% selling, 40% administrative) 14,000 Dividends 4,500 Dividend revenue 1,000 Equipment 143,600 Held-to-maturity debt securities, due 5/31/24 38,000 Income tax expense ?? Income tax payable ?? Interest expense 4,000 Interest revenue 2,300 Inventory 52,900 Land held for future use 135,100 Loss on sale of equipment 5,800 Marketable equity securities 22,700 Miscellaneous expense (70% selling. 30% administrative) 29,000 Note payable - due May 31, 2027 73,700 Prepaid insurance 1,900 Rent expense (80% selling, 20% administrative) 174,000 Retained earings, 1/1/21 93,900 Salaries expense (20% selling, 80% administrative) 205,000 Sales revenue 1,127,000 Sales commission expense 168,000 Sales returns and allowances 32,500 Trading debt securities 22,000 Treasury stock 9,000 Unearned sales revenue 3,000 Chapter 4 Chapter 5 Written Homework Assignment Fall 2021 Page 2 of 5 (1) Management of the Outdoors Corporation does not plan to so the marketable equity securities in 2022 The Outdoors Corporation disposed of the river tubing component at a before gain of $40,000. These amounts were T Name Additional information for 2021 Outdoors Corporation has less than a 20% ownership in te equity securities (2) levar Ratu Company, the river tubing - not included in the income statement accounts shown on page 1 (3) The Outdoors Corporation classifies is Bad Debt Expense as sing Expenses (4) The Outdoors Corporation did not pay any estimated tans in 2021 (6) You are not required to calculate samnings per Sharo for the year ended December 31, 2021 REQUIRED Sin this page and the following pages prepare in good form the Outdoor Corporation's multiple-stop Income 2021, and its classified Balance Sheet at December 31, 2021. Remember to include the correct heading for each These financial statem must be personally handwritten (not typed, pasted, photocopied, or printed from an -Pad, etc.) on this page and the next three pages. This assignment must be submitted at the beginning of class on Wednesday, September 22, 2021. Multiple-Step Income Statement

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