The following selected accounts and their current balances appear in the ledger of Aqua Co. for...

 

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The following selected accounts and their current balances appear in the ledger of Aqua Co. for the fiscal year ended June 30, 20Y8: Cash $ 83,500 Sales $3,625,000 Accounts Receivable Merchandise Inventory 150,000 Sales Returns and Allowances 37,800 380,000 Sales Discounts 20,200 Office Supplies 15,000 Cost of Merchandise Sold Prepaid Insurance 12,000 Sales Salaries Expense an 2,175,000 388,800 Office Equipment 115,200 Advertising Expense 45,900 Accumulated Depreciation- Depreciation Expense- 8.000 Office Equipment 49,500 Store Equipment 8,300 Store Equipment 511,500 Miscellaneous Selling Expense 2,000 Accumulated Depreciation- Office Salaries Expense 77,400 be ga Store Equipment 186,700 Rent Expense 39,900 Accounts Payable 48,600 Insurance Expense 22,950 Salaries Payable Note Payable (final navment due in five years) 0 9,600,00 Depreciation Expense- osm to 000,Office Equipment 16,200 54,000 Office Supplies Expense 1,650 Accounts Payable Salaries Payable 48,600 Insurance Expense 9,60000 Depreciation Expense-bound 22,950 Note Payable Office Equipment 16,200 (final payment due in five years) 54,000 Office Supplies Expense 1,650 Capital Stock 15,000 Miscellaneous Administrative Retained Earnings 253,800 Dividends 125,000 Expense Interest Expense 1,900 12,000 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. 3. Prepare a report form of balance sheet, assuming that the current portion of the note pay- able is $8,000. 4. Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ. The following selected accounts and their current balances appear in the ledger of Aqua Co. for the fiscal year ended June 30, 20Y8: Cash $ 83,500 Sales $3,625,000 Accounts Receivable Merchandise Inventory 150,000 Sales Returns and Allowances 37,800 380,000 Sales Discounts 20,200 Office Supplies 15,000 Cost of Merchandise Sold Prepaid Insurance 12,000 Sales Salaries Expense an 2,175,000 388,800 Office Equipment 115,200 Advertising Expense 45,900 Accumulated Depreciation- Depreciation Expense- 8.000 Office Equipment 49,500 Store Equipment 8,300 Store Equipment 511,500 Miscellaneous Selling Expense 2,000 Accumulated Depreciation- Office Salaries Expense 77,400 be ga Store Equipment 186,700 Rent Expense 39,900 Accounts Payable 48,600 Insurance Expense 22,950 Salaries Payable Note Payable (final navment due in five years) 0 9,600,00 Depreciation Expense- osm to 000,Office Equipment 16,200 54,000 Office Supplies Expense 1,650 Accounts Payable Salaries Payable 48,600 Insurance Expense 9,60000 Depreciation Expense-bound 22,950 Note Payable Office Equipment 16,200 (final payment due in five years) 54,000 Office Supplies Expense 1,650 Capital Stock 15,000 Miscellaneous Administrative Retained Earnings 253,800 Dividends 125,000 Expense Interest Expense 1,900 12,000 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. 3. Prepare a report form of balance sheet, assuming that the current portion of the note pay- able is $8,000. 4. Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ.

Answer rating: 100% (QA)

Here are the financial statements with explanations Multiplestep Income Statement for the year ended June 30 20Y8 Sales Revenue 3625000 Less Sales Ret... View the full answer