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Income Statement, Statement of Owner's Equity, and Balance Sheet

Paulson's Pet Store completed the Adjusted Trial Balance for the year ended December 31, 20--. Owner's equity as of January 1, 20--, was $498,420. The current portion of Note Payable is $4,000.

Paulson's Pet Store End-of-Period Spreadsheet (Partial) December 31, 20--
ACCOUNT TITLE	ADJUSTED TRIAL BALANCE
	DEBIT	CREDIT
Cash	23,430.00
Accounts Receivable	9,370.00
Merchandise Inventory	64,900.00
Estimated Returns Inventory	1,200.00
Supplies	2,500.00
Prepaid Insurance	1,800.00
Land	90,000.00
Building	350,000.00
Accum. Depr.Building		20,000.00
Store Equipment	120,000.00
Accum. Depr.Store Equipment		3,600.00
Accounts Payable		9,560.00
Customer Refunds Payable		1,500.00
Wages Payable		1,300.00
Sales Tax Payable		3,440.00
Note Payable		32,000.00
B. Paulson, Capital		518,420.00
B. Paulson, Drawing	4,900.00
Income Summary	59,100.00	64,900.00
	700.00	1,200.00
Sales		326,040.00
Sales Returns and Allowances	5,360.00
Purchases	162,640.00
Purchases Returns and Allowances		4,080.00
Purchases Discounts		3,200.00
Freight-In	1,600.00
Wages Expense	69,300.00
Advertising Expense	1,300.00
Supplies Expense	900.00
Phone Expense	2,736.00
Utilities Expense	2,864.00
Insurance Expense	1,600.00
Depr. ExpenseBuilding	10,000.00
Depr. ExpenseStore Equipment	1,800.00
Miscellaneous Expense	600.00
Interest Expense	640.00
	989,240.00	989,240.00
	321,140.00	399,420.00
Net Income	78,280.00

Required:

1. Prepare a multiple-step income statement.

Paulson's Pet Store
Income Statement
For Year Ended December 31, 20--
Revenue from sales:
Sales			$fill in the blank 1d9ea404607600c_2
Less: Sales returns and allowances			fill in the blank 1d9ea404607600c_4
Net sales				$fill in the blank 1d9ea404607600c_6
Cost of goods sold:
Merchandise inventory, January 1, 20--		$fill in the blank 1d9ea404607600c_8
Estimated returns inventory, January 1, 20--		fill in the blank 1d9ea404607600c_10	$fill in the blank 1d9ea404607600c_11
Purchases		$fill in the blank 1d9ea404607600c_13
Less: Purchases returns and allowances	$fill in the blank 1d9ea404607600c_15
Less: Purchases discounts	fill in the blank 1d9ea404607600c_17	fill in the blank 1d9ea404607600c_18
Net purchases		$fill in the blank 1d9ea404607600c_20
Add freight-in		fill in the blank 1d9ea404607600c_22
Cost of goods purchased			fill in the blank 1d9ea404607600c_24
Goods available for sale			$fill in the blank 1d9ea404607600c_26
Less: Merchandise inventory, December 31, 20--		$fill in the blank 1d9ea404607600c_28
Less: Estimated returns inventory, December 31, 20--		fill in the blank 1d9ea404607600c_30	fill in the blank 1d9ea404607600c_31
Cost of goods sold				fill in the blank 1d9ea404607600c_33
Gross profit				$fill in the blank 1d9ea404607600c_35
Operating expenses:
Wages expense			$fill in the blank 1d9ea404607600c_37
Advertising expense			fill in the blank 1d9ea404607600c_39
Supplies expense			fill in the blank 1d9ea404607600c_41
Phone expense			fill in the blank 1d9ea404607600c_43
Utilities expense			fill in the blank 1d9ea404607600c_45
Insurance expense			fill in the blank 1d9ea404607600c_47
Depreciation expense-building			fill in the blank 1d9ea404607600c_49
Depreciation expense-store equipment			fill in the blank 1d9ea404607600c_51
Miscellaneous expense			fill in the blank 1d9ea404607600c_53
Total operating expenses				fill in the blank 1d9ea404607600c_55
Income from operations				$fill in the blank 1d9ea404607600c_57
Other expenses:
Interest expense				fill in the blank 1d9ea404607600c_59
Net income

2. Prepare a statement of owner's equity.

Paulson's Pet Store
Statement of Owner's Equity
For Year Ended December 31, 20--
B. Paulson, capital, January 1, 20--		$fill in the blank cf2d2cfeaf8f076_2
Add additional investments		fill in the blank cf2d2cfeaf8f076_4
Total investment		$fill in the blank cf2d2cfeaf8f076_5
Net income for the year	$fill in the blank cf2d2cfeaf8f076_7
Less: Withdrawals for the year	fill in the blank cf2d2cfeaf8f076_9
Increase in capital		fill in the blank cf2d2cfeaf8f076_11
B. Paulson, capital, December 31, 20--		$fill in the blank cf2d2cfeaf8f076_13

3. Prepare a balance sheet.

Paulson's Pet Store
Balance Sheet
December 31, 20--
Assets
Current assets:
Cash		$fill in the blank 56e943059f9df80_2
Accounts receivable		fill in the blank 56e943059f9df80_4
Merchandise inventory		fill in the blank 56e943059f9df80_6
Estimated returns inventory		fill in the blank 56e943059f9df80_8
Supplies		fill in the blank 56e943059f9df80_10
Prepaid insurance		fill in the blank 56e943059f9df80_12
Total current assets			$fill in the blank 56e943059f9df80_13
Property, plant, and equipment:
Land		$fill in the blank 56e943059f9df80_15
Building	$fill in the blank 56e943059f9df80_17
Less: Accumulated depreciation	fill in the blank 56e943059f9df80_19	fill in the blank 56e943059f9df80_20
Store equipment	$fill in the blank 56e943059f9df80_22
Less: Accumulated depreciation	fill in the blank 56e943059f9df80_24	fill in the blank 56e943059f9df80_25	fill in the blank 56e943059f9df80_26
Total assets			$fill in the blank 56e943059f9df80_27
Liabilities
Current liabilities:
Note payable	$fill in the blank 56e943059f9df80_29
Accounts payable	fill in the blank 56e943059f9df80_31
Customer refunds payable	fill in the blank 56e943059f9df80_33
Wages payable	fill in the blank 56e943059f9df80_35
Sales tax payable	fill in the blank 56e943059f9df80_37
Total current liabilities		$fill in the blank 56e943059f9df80_38
Long-term liabilities:
Note payable	$fill in the blank 56e943059f9df80_40
Less: Current portion	fill in the blank 56e943059f9df80_42	fill in the blank 56e943059f9df80_43
Total liabilities			$fill in the blank 56e943059f9df80_44
Owners Equity
B. Paulson, capital			fill in the blank 56e943059f9df80_46
Total liabilities and owner's equity			$fill in the blank 56e943059f9df80_47

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