On October 31, 20Y5, the balances of the accounts appearing in the ledger of Quality Interiors Company, a furniture wholesaler, are as follows:

a. Prepare a multiple-step income statement for the year ended October 31, 20Y5.
b. Compare the major advantages and disadvantages of the multiple-step and single-step forms of incomestatements.

Transcribed Image Text:

Administrative Expenses Building Capital Stock Cash Cost of Merchandise Sold Dividends Interest Expense Merchandise Inventory Notes Payable S 600,000 Office Supplies 300,000 Salaries Payable 2,500,000 Sals Discounts $ 5,000 903,000 12,000 5,000,000 400,000 20,000 Sales Returns and Allowances 100,000 850,000 15,000 ,000, 000 Retained Earnings 175,000 Sales 50,000 Selling Expenses 400,000 Store Supplies 900,000