Followings are the accounts appeared in the adjusted trial balance for the November 30, 2017 of...

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Followings are the accounts appeared in the adjusted trial balance for the November 30, 2017 of Style Clothing. Accounts name Accounts payable Accounts receivable Accumulated dep - equipment c) Cash Cost of goods sold Freight out Equipment Depreciation expense Insurance expense Interest expense Interest revenue Inventory Utilities expense Amount 25200 30500 45000 Drawings Accounts name Notes payable Owner's capital year ended 26000 Prepaid insurance 518000 6500 Tax payable 146000 Rent expense 11000 Salaries expense 7000 Sales revenue 6400 Sales commission expense 2000 Commission payable 32000 Sales return and allowance 8500 Property tax expense Amount 37000 101700 10000 3500 3500 2500 15000 96000 720000 11000 4500 8000 a) Prepare a multi-step income statement for the year ended November 30, 2017. (8) b) Prepare a classified balance sheet as at November 30, 2017. You are required to show equity statement separately. Notes payable are in due in 2020. (12) What kind of cost flow method Style Clothing uses in accounting system? Describe in brief the potential advantages that the company enjoys using that method. Followings are the accounts appeared in the adjusted trial balance for the November 30, 2017 of Style Clothing. Accounts name Accounts payable Accounts receivable Accumulated dep - equipment c) Cash Cost of goods sold Freight out Equipment Depreciation expense Insurance expense Interest expense Interest revenue Inventory Utilities expense Amount 25200 30500 45000 Drawings Accounts name Notes payable Owner's capital year ended 26000 Prepaid insurance 518000 6500 Tax payable 146000 Rent expense 11000 Salaries expense 7000 Sales revenue 6400 Sales commission expense 2000 Commission payable 32000 Sales return and allowance 8500 Property tax expense Amount 37000 101700 10000 3500 3500 2500 15000 96000 720000 11000 4500 8000 a) Prepare a multi-step income statement for the year ended November 30, 2017. (8) b) Prepare a classified balance sheet as at November 30, 2017. You are required to show equity statement separately. Notes payable are in due in 2020. (12) What kind of cost flow method Style Clothing uses in accounting system? Describe in brief the potential advantages that the company enjoys using that method.

Answer rating: 100% (QA)

a Multistep income statement for the year ended November 30 2017 Sales 720000 Less Sales returns and ... View the full answer