The following selected accounts and their current balances appear in the ledger of Prescott Inc. for...
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The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30, 20Y8: Cash $ 167,000 Retained Earnings $ 507,600 Accounts Receivable 300,000 Dividends 250,000 Inventory Estimated Returns Inventory 735,000 Sales 7,134,000 25,000 Cost of Goods Sold 4,350,000 Office Supplies Sales Salaries Expense Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Depreciation Expense- Office Equipment Office Supplies Expense 30,000 777,600 Prepaid Insurance Office Equipment Accumulated Depreciation- Office Equipment Store Equipment Accumulated Depreciation- 24,000 91,800 230,400 16,600 99,000 4,000 1,023,000 154,800 79,800 Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Note Payable (final payment due in five years) 373,400 45,900 67,000 30,200 32,400 19,200 3,300 Miscellaneous Administrative 108,000 Expense Interest Expense 3,800 Common Stock 30,000 24,000 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of stockholders' equity. No common stock was issued during the year. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $16,000. 4. Briefly explain how multiple-step and single-step income statements differ. The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30, 20Y8: Cash $ 167,000 Retained Earnings $ 507,600 Accounts Receivable 300,000 Dividends 250,000 Inventory Estimated Returns Inventory 735,000 Sales 7,134,000 25,000 Cost of Goods Sold 4,350,000 Office Supplies Sales Salaries Expense Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Depreciation Expense- Office Equipment Office Supplies Expense 30,000 777,600 Prepaid Insurance Office Equipment Accumulated Depreciation- Office Equipment Store Equipment Accumulated Depreciation- 24,000 91,800 230,400 16,600 99,000 4,000 1,023,000 154,800 79,800 Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Note Payable (final payment due in five years) 373,400 45,900 67,000 30,200 32,400 19,200 3,300 Miscellaneous Administrative 108,000 Expense Interest Expense 3,800 Common Stock 30,000 24,000 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of stockholders' equity. No common stock was issued during the year. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $16,000. 4. Briefly explain how multiple-step and single-step income statements differ.
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Prepare the multistep income statement as shown below P INC Multistep income state... View the full answer
Related Book For
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
Posted Date:
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