The following amounts appeared on Davison Company’s adjusted trial balance as of October 31, 2023, the end of its fiscal year:

Required

1. Prepare a classified multiple-step income statement for internal use (see Exhibit 5.13) that lists the company’s net sales, cost of goods sold, and gross profit, as well as the components and amounts of selling expenses and general and administrative expenses.

2. Present a condensed single-step income statement (see Exhibit 5.15) that lists these costs: cost of goods sold, selling expenses, and general and administrative a expenses.

Transcribed Image Text:

Merchandise inventory. Other assets..... Liabilities....... Brenda Davison, capital. Brenda Davison, withdrawals Interest income Sales ......... Sales discounts Sales returns and allowances. Cost of goods sold....... Sales salaries expense Rent expense, selling space. Store supplies expense Advertising expense Office salaries expense. Rent expense, office space Office supplies expense Totals Debit Credit $ 16,000 256,800 65,000 6,500 28,000 169,300 52,000 19,000 5,000 $ 78,400 203,280 1,120 424,000 29,400 53,000 5,200 1,600 $706,800 $706,800