Selected accounts and related amounts for Druid hills Co. for the fiscal year ended May 31, 20Y8,
Question:
Selected accounts and related amounts for Druid hills Co. for the fiscal year ended May 31, 20Y8, are presented in Problem 6-5A.
Instructions
1. Prepare a single-step income statement in the format shown in Exhibit 12.
2. Prepare closing entries as of May 31, 20Y8.
Data from Problem 6-5A.
The following selected accounts and their current balances appear in the ledger of Druid Hills Co. for the fiscal year ended May 31, 20Y8:
Cash .......................................... $ 290,800
Kristina Marble, Drawing ....... $ 121,200
Accounts Receivable ............... 1,170,600
Sales ....................................... 13,746,000
Merchandise Inventory .......... 2,075,300
Cost of Merchandise Sold ...... 9,513,000
Office Supplies .............................. 16,400
Sales Salaries Expense ............ 1,110,100
Prepaid Insurance ........................... 9,700
Advertising Expense .................... 666,500
Office Equipment ...................... 1,005,800
Depreciation Expense ..................... —
Accumulated Depreciation ............. —
Store Equipment .......................... 169,700
Office Equipment ......................... 666,500
Miscellaneous Selling Expense ..... 46,100
Store Equipment ....................... 4,362,700
Office Salaries Expense ............... 787,700
Accumulated Depreciation .............. —
Rent Expense ................................... 3,900
Store Equipment ....................... 2,205,600
Depreciation Expense ...................... —
Account payable .......................... 395,100
Office Equipment .......................... 60,600
Customer Refund Payable ........... 48,500
Insurance Expense ....................... 58,200
Salaries Payable ............................ 50,300
Office Supplies Expense .............. 34,100
Note Payable ..................................... —
Miscellaneous Administrative Exp. ....... 17,600
final payment due in 10 years) ............ 363,600
Interest Expense ...................................... 25,400
Kristina Marble Capital ...................... 4,179,800
Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner’s equity.
3. Prepare a balance sheet, assuming that the current portion of the note payable is $60,000.
4. Briefly explain how multiple-step and single-step income statements differ.
Step by Step Answer:
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider