The following selected accounts and their current balances appear in the ledger of Cypress Co. for the fiscal year ended June 30, 2003:

Cash $ 26,500 Sales $ 1,500,000

Notes Receivable 50,000 Sales Returns & Allowances 21,000

Accounts Receivable 62,000 Sales Discounts 11,000

Merchandise Inventory 100,000 Cost of Merchandise Sold 1,070,000

Office Supplies 2,600 Sales Salaries Expense 210,000

Prepaid Insurance 6,800 Advertising Expense 28,300

Office Equipment 64,000 Depreciation Expense -

Accumulated Depreciation – Store Equipment 4,600

Office Equipment 10,800 Miscellaneous Selling Expense 1,100

Store Equipment 117,500 Office Salaries Expense 41,000

Accumulated Depreciation - Rent Expense 22,150

Store Equipment 48,600 Insurance Expense 12,750

Accounts Payable 27,000 Depreciation Expense -

Salaries Payable 2,000 Office Equipment 9,000

Note Payable (10 years) 30,000 Office Supplies Expense 900

Capital Stock 60,000 Miscellaneous Admin Expense 1,200

Retained Earnings 208,000 Interest Revenue 5,000

Dividends 25,000 Interest Expense 4,000

1. Prepare a multiple-step income statement

2. Prepare a retained earnings statement

3. Prepare a balance statement

Answer rating: 100% (QA)

Prepare a multistep income statement Particulars Sales Less Sales returns Less Sales Disco... View the full answer