The following selected accounts and their current balances appear in the ledger of Black Lab Co. for
Question:
The following selected accounts and their current balances appear in the ledger of Black Lab Co. for the fiscal year ended April 30, 2012:
Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $7,000.
4. Briefly explain
(a) How multiple-step and single-step income statements differ and
(b) How report-form and account-form balance sheetsdiffer.
Transcribed Image Text:
Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation 42,000 Sales Returns and Allowances 150,000 Sales Discounts 180,000 Cost of Merchandise Sold $40,000 15,000 1,855,000 400,000 120,000 5,000 12,000 Sales Salaries Expense Advertising Expense Depreciation Expense- 120,000 Office Equipment Store Equipment Accumulated Depreciation Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense 15,000 18,000 240,000 38,000 24,000 28,000 500,000 Store Equipment Accounts Payable Salaries Payable Note Payable 87,500 sance Expense 48,500 Depreciation Expense 7,000 4,000 6,000 8,000 4,000 Office Equipment Office Supplies Expense Miscellaneous Administrative Exp. final payment due 2032) Cindy Worley, Capital Cindy Worley, Drawing Sales 140,000 386,000 Interest Expense 45,000 3,150,000
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1 BLACK LAB CO Income Statement For the Year Ended April 30 2012 Revenue from sales Sales 3150000 Less Sales returns and allowances 40000 Sales discou...View the full answer
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