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. 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 Transcribed Image Text: Debit
Credit
101
Cash .
$ 8,000
119
Merchandise inventory .
16,200
125 Supplies.
10,000
128 Prepaid insurance
4,000
165
Store equipment
51,000
166 Accumulated depreciation, store equipment .
$ 46,800
Office equipment
168 Accumulated depreciation, office equipment ..
Accounts payable ..
Jonah Bell, capital .
167
69,000
34,200
…..
201
16,000
301
29,000
302 Jonah Bell, withdrawals
41,000
413 Sales
291,800
415
Sales discounts.
2,000
505 Cost of goods sold
74,800
……
612
Depreciation expense, store equipment .
5,200
613
Depreciation expense, office equipment
3,800
622 Sales salaries expense
46,000
623 Office salaries expense
32,000
637 Insurance expense, store
2,000
638 Insurance expense, office.
1,600
640 Rent expense, office space
13,000
Rent expense, selling space
Office supplies expense
641
17,000
651
1,200
652 Store supplies expense
2,400
655 Advertising expense
17,600
Totals
$417,800
$417,800

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