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Monty Company recently hired a new accountant whose first task was to prepare the financial statements for the year ended December 31, 2024. The following is what he produced: Question 1 of 4 Less: Purchase returns and allowances /13 Net purchases Add: Sales returns and allowances 236,5004,000 Cost of goods available for sale Add: Delivery expense Cost of selling merchandise Gross profit margin Operating expenses Freight in 4,500 Insurance expense 10,500 Interest expense 2,400 Question 1 of 4 Interest expense Rent expense Salaries expense Total operating expenses Profit margin 54,00077,700 Other revenues Interest revenue $1,500 Investment by owner 3,3004,800 Other expenses Depreciation expense 6,600 Drawings by owner 54,60048,000$4,00(49,800) Interest revenue Investment by owner Other expenses Depreciation expense Drawings by owner Profit from operations MONTY COMPANY Balance Sheet Year Ended December 31, 2024 Assets Cash Question 1 of 4 The owner of the company, Lily Jackson, is confused by the statements and has asked you for your help. She doe. The owner of the company, Lily Jackson, is confused by the statements and has asked you for your help. She doesn't understand how, if her Owner's Capital account was $73,500 at December 31, 2023, owner's equity is now only $22,600. The accountant tells you that $22,600 must be correct because the balance sheet is balanced. The accountant also tells you that he didn't prepare a statement of owner's equity because it is an optional statement. You are relieved to find out that, even though there are errors in the statements, the amounts used from the accounts in the general ledger are the correct amounts. Monty Company uses the periodic inventory system with the earnings approach. Prepare the correct multiple-step income statement. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) MONTY COMPANY Statement of Owner's Equity Year Ended December 31, 2024 $ Prepare the correct classified balance sheet. You determine that $4,800 of the loan payable on the equipment must be paid 2025. (List Current Assets in order of liquidity.) Question 1 of 4 $ Question 1 of 4 113 $ /13 Liabilities and Owner's Equity $

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