The following amounts appeared on Davison Companys adjusted trial balance as of October 31, 2020, the end

Question:

The following amounts appeared on Davison Company’s adjusted trial balance as of October 31, 2020, the end of its fiscal year:

Credit Debit $ 16,000 Merchandise inventory. Other assets. 256,800 $ 78,400 Liabilities. Brenda Davison, capital. 203,28


Required

1. Prepare a classified multiple-step income statement for internal use (see Exhibit 5.13) that lists the company’s net sales, cost of goods sold, and gross profit, as well as the components and amounts of selling expenses and general and administrative expenses.

2. Present a condensed single-step income statement (see Exhibit 5.15) that lists these costs: cost of goods sold, selling expenses, and general and administrative expenses.


Exhibition 5.13


Exhibit 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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