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The following adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year, December 31, 2020: Account Debit Credit 101 Cash $ 8,000 119 Merchandise inventory 16,200 125 Supplies 10,000 128 Prepaid insurance 4,000 165 Store equipment 51,000 $ 46,800 166 Accumulated depreciation, store equipment 167 Office equipment 69,000 168 Accumulated depreciation, office equipment 34,200 201 Accounts payable 16,000 301 Jonah Bell, capital 29,000 302 Jonah Bell, withdrawals 41,000 413 Sales 291,800 415 Sales discounts 2,000 505 Cost of goods sold 74,800 612 5,200 613 Depreciation expense, store equipment Depreciation expense, office equipment Sales salaries expense 3,800 622 46,000 623 Office salaries expense 32,000 637 2,000 638 1,600 640 13,000 Insurance expense, store Insurance expense, office Rent expense, office space Rent expense, selling space Office supplies expense Store supplies expense 641 17,000 651 1,200 652 2,400 655 Advertising expense 17,600 Totals $417,800 $417,800 Required: 1. Prepare a classified multiple-step income statement that would be used by the business's owner. BELL SERVICING Income Statement For Year Ended December 31, 2020 Operating expenses: Selling Expenses: Total selling expenses General and administrative expenses: Total general and administrative expenses Total operating expenses 2. Prepare a multiple-step income statement that would be used by external users. BELL SERVICING Income Statement For Year Ended December 31, 2020 Operating expenses: Total operating expenses 3. Prepare a single-step income statement that would be provided to decision makers outside the company. BELL SERVICING Income Statement For Year Ended December 31, 2020 Revenues: Expenses: Total expenses Analysis Component: If you were a decision maker external to Bell Servicing, which income statement format would you prefer and why, if you had a choice? Format of income statement Which income statement format(s) could you expect as an external user? Format of income statement

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