The following selected accounts from the Blue Door Corporation's general ledger are presented below for the year
Question:
The following selected accounts from the Blue Door Corporation's general ledger are presented below for the year ended December 31, 2015:
Advertising expense ............................ $ 55,000
Common shares .................................. 250,000
Cost of goods sold ............................ 1,085,000
Depreciation expense ........................... 125,000
Dividends ........................................ 150,000
Freight out ......................................... 25,000
Income tax expense .............................. 70,000
Insurance expense ................................ 15,000
Interest expense .................................. 70,000
Interest revenue .................................. 30,000
Merchandise inventory .......................... 67,000
Rent revenue ...................................... 24,000
Retained earnings ............................... 535,000
Salaries expense ................................. 675,000
Sales ............................................ 2,400,000
Sales discounts ..................................... 8,500
Sales returns and allowances .................... 41,000
Unearned revenue ................................. 8,000
Instructions
(a) Prepare a single-step income statement.
(b) Prepare a multiple-step income statement.
(c) Are the expenses classified by nature or function in the list of accounts above? Explain.
Step by Step Answer:
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine