Reference no: EM133058119
Question - The following is a list of the accounts and balances taken from the adjusted trial balance at December 31, 2021 for, Meilleur Merchants. The list of accounts is in alphabetical order. All accounts have normal balances.
Meilleur uses a periodic inventory system and the earnings approach to recognize revenue.
Account Balance Dec. 31
1 Accounts payable $15,000
2 Accounts receivable 30,000
3 Accumulated depreciation-building 15,500
4 Accumulated depreciation-equipment 10,000
5 Advertising expense 4,100
6 Building 84,600
7 S. Meilleur, capital 75,000
8 S. Meilleur, drawings 28,300
9 Cash 8,370
10 Depreciation expense 6,000
11 Equipment 24,500
12 Freight in 3,400
13 Freight out 650
14 Insurance expense 1,050
15 Interest expense 2,020
16 Interest revenue 1,040
17 Land 12,000
18 Merchandise inventory, beginning 90,200
19 Mortgage payable 57,600
20 Prepaid insurance 2,100
21 Property tax expense 1,300
22 Property taxes payable 600
23 Purchase discounts 6,300
24 Purchase returns and allowances 14,500
25 Purchases 267,400
26 Rent revenue 1,500
27 Salaries expense 40,500
28 Salaries payable 650
29 Sales 421,100
30 Sales discounts 15,500
31 Sales returns and allowances 17,900
32 Unearned revenue 23,000
33 Utilities expense 1,900
Additional information: According to the year-end physical count, the merchandise inventory had a balance of $14,600.
Required - Prepare a multiple-step income statement for Meilleur Merchants for the year ended December 31, 2021.