Reference no: EM132525907

Wildflower Company began operations two years ago. Its adjusted account balances at December 31, 2018, are listed below:

Account Debit Credit

Cash $1,300

Merchandise inventory 46,000

Store supplies 18,900

Store equipment 147,600

Accumulated depreciation, store equipment 29,000

Accounts payable 12,000

Nymeth Sarda, capital 158,800

Nymeth Sarda, withdrawals 2,000

Sales 342,200

Sales discounts 3,000

Sales returns and allowances 9,000

Cost of goods sold 111,600

Sales salaries expense 94,000

Rent expense, selling space 12,000

Office supplies expenses 1,000

Rent expense, office space 56,000

Advertising expense 39,600

Totals $542,000 $542,000

Required

Question 1: Prepare classified multi-step income statement.