The following adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year,

Question:

The following adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year, December 31, 2020:

Debit Credit $ 8,000 101 Cash. Merchandise inventory. 119 16,200 125 Supplies. 10,000 4,000 128 Prepaid insurance. 51,00


Required

1. Prepare a classified multiple-step income statement that would be used by the business’s owner (like Exhibit 5.13).

2. Prepare a multiple-step income statement that would be used by external users (like Exhibit 5.14).

3. Prepare a single-step income statement that would be provided to decision makers outside the company (like Exhibit 5.15).

Analysis Component: If you were a decision maker external to Bell Servicing, which income statement format would you prefer and why, if you had a choice? Which income statement format(s) could you expect as an external user? Why?


Exhibition 5.13


Exhibition 5.14


Exhibition 5.15

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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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