From the adjusted trial balance given below for the Grayson Company, prepare a multiple-step income statement in good form. Salaries expense and building depreciation expense should be equally divided between selling activities and the general and administrative activities. Grayson CompanyAdjusted Trial BalanceDecember 31?DebitCreditCash$ 19,500?Accounts receivable27,000?Merchandise inventory38,000?Office supplies1,200?Store equipment80,000?Accumulated depreciation-store equipment?$ 25,000Building260,000?Accumulated depreciation-building?121,600Accounts payable?28,500Salaries payable?10,000Common stock?100,000Retained earnings?69,900Dividends45,000?Sales?450,000Sales discounts8,000?Sales returns and allowances24,500?Cost of goods sold210,000?Salaries
expense38,000?Depreciation expense-store equipment16,000?Depreciation expense-building24,000?Advertising expense12,300?Office supplies expense3,500?Gain on disposal of store equipment?3,000Interest expense1,000?Totals$808,000$808,000
What will be an ideal response?
| Grayson Company Income Statement For the year ended December 31 | ||
| Sales | ? | $450,000 |
| Less: Sales discounts | $ 8,000 | ? |
| Sales returns and allowances | 24,500 | 32,500 |
| Net sales | ? | $417,500 |
| Cost of goods sold | ? | 210,000 |
| Gross profit | ? | 207,500 |
| Operating expenses | ? | ? |
| Selling expenses | ? | ? |
| Sales salaries expense | $ 19,000 | ? |
| Depreciation expense-store equipment | 16,000 | ? |
| Depreciation expense-building | 12,000 | ? |
| Advertising expense | 12,300 | ? |
| Total selling expenses | 59,300 | ? |
| General and administrative expenses | ? | ? |
| Salaries expense | $ 19,000 | ? |
| Depreciation expense-building | 12,000 | ? |
| Office supplies expense | 3,500 | ? |
| Total general and administrative expenses | 34,500 | ? |
| Total operating expenses | ? | 93,800 |
| Income from operations | ? | 113,700 |
| Other revenues and gains (expenses and losses) | ? | ? |
| Gain on disposal of store equipment | 3,000 | ? |
| Interest expense | (1,000) | 2,000 |
| Net income | ? | $ 115,700 |
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