Use the adjusted trial balance and prepare a properly format…
Use the adjusted trial balance and prepare a properly formatted Multi-step Income Statement. Holiday’s Music Corp. Adjusted Trial Balance 30-Apr Dr. Cr. Cash $68,000 Accounts Receivable 12,000 Prepaid Insurance 850 Prepaid Advertising 13,250 Office Supplies 1,475 Merchandise Inventory 27,850 Equipment 250,000 Accumulated Depreciation-Equipment $100,000 Music Copyrights 60,000 Accounts Payable 10,300 Salaries Payable 63,018 Notes Payable 7,500 Long-term Notes Payable 92,500 Common Stock 25,000 Retained Earnings 173,862 Dividends 30,000 Sales $265,065 Sales Discount 25,702 Sales Returns and Allowances 4,370 Cost of Goods Sold 124,209 Insurance Expense (on office) 3,000 Advertising Expense 1,900 Office Salaries Expense 23,000 Office Supplies Expense 13,319 Office Rent 24,000 Depreciation Expense- Office Building 5,000 Royalties (an expense) 26,000 Travel Expenses (sales related) 13,200 Utilities Expense 7,230 Interest Expense 2,890 Totals $737,245 $737,245