Items from the accounts of Superior Milk Company follow, listed in alphabetical order.

\section*{Required}
1. Prepare the business's multiple-step income statement for May of the current year. In a separate schedule, show the computation of cost of goods sold.
2. Prepare the income statement in single-step format.
3. Prepare the balance sheet in report format at May 31 of the current year. Show your computation of the May 31 balance of Retained Earnings.

Transcribed Image Text:

Accounts payable. $ 16,950 Inventory: April 30. $ 69,350 Accounts receivable.. 43,700 Accumulated depreciation- May 31. Note payable, long-term.. 65,520 39,000 office equipment 22,450 Office equipment.... 58,680 Accumulated depreciation- Purchases of inventory. 364,000 store equipment.. 16,000 Purchase discounts. 1,990 Cash.......... 7,890 Purchase returns Common stock.. 50,000 and allowances..... 3,400 Cost of goods sold P Retained earnings, April 30... 24,620 Dividends. 9,000 Salary payable.. 2,840 General expenses 116,700 Sales discounts..... 10,400 Interest expense 5,400 Sales returns and allowances. 18,030 Interest payable.. 1,100 Sales revenue 731,000