Psymon Company, Inc., sells construction equipment. The annualfiscal period ends on December 31. The following adjusted trialbalance was created from the general ledger accounts on December31: Account Titles Debits Credits Cash $ 42,000 Accounts Receivable18,000 Inventory 65,000 Property and Equipment 50,000 AccumulatedDepreciation $ 21,000 Accounts Payable 30,000 Common Stock 90,000Retained Earnings, January 1 11,600 Sales Revenue 167,000 Cost ofGoods Sold 98,000 Salaries and Wages Expense 17,000 Office Expenses18,000 Interest Expense 2,000 Income Tax Expense 9,600 Totals $319,600 $ 319,600
- Prepare a multistep income statement that would be used forexternal reporting purposes. TIP: Some of the accounts listed willappear on the balance sheet rather than the income statement.
