I am having trouble figuring this out. Any help would be appreciated. ZZZ

I am having trouble figuring this out. Any help would be appreciated.

ZZZ Company sells beds and linens. There are 100000 shares of capital stock outstanding. The annual fiscal period ends on December 31. The following condensed
trial balance was taken from the general ledger on December 31 2010:

Debit Credit

Cash $ 42000

Accounts receivable 18000

Inventory 65000

Operational assets 50000

Accumulated depreciation $ 21000

Liabilities 30000

Common stock 90000

Retained earnings January 1 2009 11600

Sales revenue 182000

Sales returns and allowances 7000

Cost of goods sold 98000

Selling expense 17000

Administrative expense 18000

Interest expense 2000

Extraordinary loss 8000

Income tax expense (30% tax rate) 9600

Totals $334600 $334600

Required:Prepare a multiple-step income statement. Hint: the extraordinary item needs to be shown below the income from operations and shown
net of taxes. You will have to search outside of your textbook to find an example.

Connect Inc. uses the perpetual inventory system. On May 1 2010 merchandise was sold on credit at an invoice price of $1000 terms 3/10 n/30. The
merchandise cost $600. Give the journal entries to record the following.

To record the sales:

Assumption 1: To record collection on May 7 2010:

Assumption 2: To record collection on May 31 2010: