(Solution) - The following information is from the unadjusted trial balance for -(2025 Original AI-Free Solution)

Paper Details

The following information is from the unadjusted trial balance for Journey's Knd Company prepared at October 31, 2014, the end of the fiscal year:

Rent and salaries expense are equally divided between the selling and administrative functions. Journey's End Company uses a perpetual inventory system
Required
1. Copy the unadjusted trial balance on a work sheet form and complete the work sheet using the following information:
a. Store supplies on hand at year-end amount to $6,600.
b. The balance in the Prepaid Insurance account represents 12 months of insurance that was in effect starting November 1, 2013.
c. The store equipment was purchased several years ago, when it was estimated to have a 20-year useful life and a resale value at the end of its life of $47,600.
d. A physical count of the ending merchandise inventory shows $29,800 of goods on hand.
2. Prepare a multiple-step income statement (see Exhibit 5.16).
Analysis Component: Explain why Interest Expense is shown under Other revenues and expenses on the multiple-step income statement.