The following adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year,
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Question:
The following adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year, December :
Account Debit Credit
Cash $
Merchandise inventory
Supplies
Prepaid insurance
Store equipment
Accumulated depreciation, store equipment $
Office equipment
Accumulated depreciation, office equipment
Accounts payable
Jonah Bell, capital
Jonah Bell, withdrawals
Sales
Sales discounts
Cost of goods sold
Depreciation expense, store equipment
Depreciation expense, office equipment
Sales salaries expense
Office salaries expense
Insurance expense, store
Insurance expense, office
Rent expense, office space
Rent expense, selling space
Office supplies expense
Store supplies expense
Advertising expense
Totals $ $
Required:
Prepare a classified multiplestep income statement that would be used by the businesss owner.
Prepare a multiplestep income statement that would be used by external users.
Prepare a singlestep income statement that would be provided to decision makers outside the company.
Analysis Component:
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 formats could you expect as an external user?
Related Book For
Fundamental Accounting Principles
ISBN: 978-0071051507
Volume I, 14th Canadian Edition
Authors: Larson Kermit, Tilly Jensen
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