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

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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Credit Debit $ 16,000 Merchandise inventory. Other assets. 256,800 $ 78,400 Liabilities. Brenda Davison, capital. 203,280 Brenda Davison, withdrawals. 65,000 Interest income. 1,120 424,000 Sales. Sales discounts. 6,500 Sales returns and allowances. 28,000 Cost of goods sold. 169,300 Sales salaries expense. Rent expense, selling space. 52,000 19,000 Store supplies expense.. 5,000 Advertising expense. 29,400 Office salaries expense. Rent expense, office space. Office supplies expense. 53,000 5,200 1,600 Totals. $706,800 $706,800