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Information from the unadjusted trial balance of Electric Bike on December 31, 2020, the end of the annual accounting period, is as follows:

Cash ..........................................................		$ 16,400
Accounts receivable ..................................		45,530
Merchandise inventory .............................		69,400
Store supplies ............................................		4,930
Office supplies ..........................................		1570
Prepaid insurance ......................................		6,710
Equipment .................................................		151,180
Accumulated depreciation, equipment .....		27,510
Accounts payable ......................................		16,200
Salaries payable ........................................		-0-
Braeden Li, capital ....................................		341,430
Braeden Li, withdrawals ...........................		125,000
Interest income .........................................		640
Sales ..........................................................		1,059,000
Sales returns and allowances ....................		10,340
Cost of goods sold ....................................		762,520
Salaries expense ........................................		192,800
Rent expense .............................................		58,400
Supplies expense .......................................		-0-
Depreciation expense, equipment .............		-0-
Insurance expense .....................................		-0-

Required

1. Prepare unadjusted Trial Balance

2. Record adjusting entries for the following information.

a. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a resale value at the end of its life of $29,180.

b. The balance in the Prepaid Insurance account was reviewed and it was determined that $520 was unused at December 31, 2020.

c. A review of the store supplies on December 31, 2020, revealed a balance on hand of $4,060; a similar examination of the office supplies showed that $1290 had been used.

d. Accrued salaries payable, $3,700

e. A count of the merchandise inventory revealed a balance on hand December 31, 2020, of $67,780.

3. Using the above adjustments Prepare adjusted trial Balance

4. Using adjusted trial balance numbers, prepare a multiple-step income statement

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