Smith Electronics Company are listed along

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P5-40B Preparing a multi-step income statement and a classified balance sheet
[30–40 min]

Link Back to Chapter 4 (Classified Balance Sheet). The accounts of Smith
Electronics Company are listed along with their balances before closing for the
month ended October 31, 2012.

Interest revenue $500 Accounts payable $16,900
Inventory 45,400 Accounts receivable 33,900
Note payable, long–term 47,000 Accumulated depreciation 38,100
Salary payable 3,400 Smith, capital, Sep 30 52,500
Sales discounts 2,700 Smith, drawing 19,000
Sales returns and allowances 8,100 Cash 7,600
Sales revenue 296,500 Cost of goods sold 162,100
Selling expense 37,500 Equipment 130,900
Supplies 6,300 General expenses 16,200
Unearned sales revenue 13,800 Interest payable 1,000

Requirements
1. Prepare Smith Electronics’ multi-step income statement.
2. Prepare Smith Electronics’ statement of owner’s equity.
3. Prepare Smith Electronics’ classified balance sheet in report form.