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 Estimated Returns Inventory 4,370 Equipment 250,000 Accumulated Depreciation-Equipment $100,000 Music Copyrights 60,000 Accounts Payable 10,300 Salaries Payable 63,018 Customer Refunds Payable 3,800 Notes Payable (short term) 7,500 Long-term Notes Payable 92,500 Common Stock 25,000 Retained Earnings 170,062 Dividends 30,000 Sales $265,065 Sales Discount 25,702 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