Question

The following information was taken from the accounts of Adams’s Eatery, a delicatessen, at December 31, 2016. The accounts are listed in alphabetical order, and each has a normal balance.
Accounts payable ......... $1,200
Accounts receivable ........ 800
Advertising expense ........ 400
Cash ............... 820
Common stock ......... 400
Cost of goods sold ........ 1,200
Interest expense .......... 140
Loss on sale of land ......... 50
Merchandise inventory ........ 900
Prepaid rent ............ 80
Rent expense ........... 220
Retained earnings ......... 1,000
Salaries expense ........... 260
Sales revenue ........... 2,000
Required
First, prepare an income statement for the year using the single-step approach. Then prepare another income statement using the multistep approach.


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  • CreatedApril 20, 2015
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