On August 31, 2008, the balances of the accounts appearing in the ledger of The Bent Needle
Question:
On August 31, 2008, the balances of the accounts appearing in the ledger of The Bent Needle Company, a furniture wholesaler, area follow:
Administrative Expenses $125,000
Building 512,500
Cash 48,500
Cost of Merchandise Sold 700,000
Interest Expense 7,500
Capital Stock 568,580
Dividends 25,000
Merchandise Inventory 130,000
Notes Payable 25,000
Office Supplies 10,600
Salaries Payable 3,220
Sales 1,275,000
Sales Discounts 20,000
Sales Returns and Allowances 80,000
Selling Expenses 205,000
Store Supplies 7,700
1. Prepare a multiple-step income statement for the year ended August 31, 2008.
2. Compare the major advantages and disadvantages of the multiple-step and single-step form of income statements.
Step by Step Answer:
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac