The following adjusted trial balance for Bell Serving was prepared at the end of the fiscal year, December 31, 2020:Required:Prepare a classified multiple-step income statement that would be used by the business ownerPrepare a multiple step- income statement that would be used by external usersPrepare a single- step income statement that would be provided to decision makers outside the company.If you were a decision maker external to Bell Servicing, which income statement format would you prefer and why, if you had a choice. Which income statement format could you expect as an external user? Why?picture 3 is the data entry for the whole exercise DebitCredit101Cash .$ 8,000119Merchandise inventory .16,200125 Supplies.10,000128 Prepaid insurance4,000165Store equipment51,000166 Accumulated depreciation, store equipment .$ 46,800Office equipment168 Accumulated depreciation, office equipment ..Accounts payable ..Jonah Bell, capital .16769,00034,200.....20116,00030129,000302 Jonah Bell, withdrawals41,000413 Sales291,800415Sales discounts.2,000505 Cost of goods sold74,800......612Depreciation expense, store equipment .5,200613Depreciation expense, office equipment3,800622 Sales salaries expense46,000623 Office salaries expense32,000637 Insurance expense, store2,000638 Insurance expense, office.1,600640 Rent expense, office space13,000Rent expense, selling spaceOffice supplies expense64117,0006511,200652 Store supplies expense2,400655 Advertising expense17,600Totals$417,800$417,800

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Description: The following adjusted trial balance for Bell Serving was prepared at the end of the fiscal year, December 31, 2020:Required:Prepare a classified multiple-step income statement that would be used by the business ownerPrepare a multiple step- income s

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The following adjusted trial balance for Bell Serving was prepared at the end of the fiscal year, December 31, 2020: Required: Prepare a classified multiple-step income statement that would be used by the business owner Prepare a multiple step- income statement that would be used by external users Prepare a single- step income statement that would be provided to decision makers outside the company.

The following adjusted trial balance for Bell Serving was prepared at the end of the fiscal year, December 31, 2020: Required: Prepare a classified multiple-step income statement that would be used by the business owner Prepare a multiple step- income statement that would be used by external users Prepare a single- step income statement that would be provided to decision makers outside the company.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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