1)
2) Instruction (Need Journal)
3) Instruction (Need Journal)
4) Instruction (Need Income Statement, Retained Earnings, and Balance Sheet)
On March 31, 2018, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture wholesaler, a Accounts Receivable $170,000 Inventory 980,000 250,000 20,000 Accumulated Depreciation-Building Administrative Expenses Building Cash $750,000 435,000 3,500,000 80,000 300,000 Notes Payable Office Supplies Retained Earnings Salaries Payable Sales 1,987,000 8,000 8,245,000 Common Stock Cost of Goods Sold 575,000 5,500,000 175,000 15,000 Selling Expenses Store Supplies Dividends 90,000 Interest Expense a. Prepare a multiple-step income statement for the year ended March 31, 2018. Royal Furnishings Company Income Statement For the Year Ended March 31, 2018 Sales Cost of goods sold Gross profit Expenses: Selling expenses Administrative expenses Total expenses Income from operations Other revenue and expense: Interest expense Net income b. What is a major advantage of the multiple-step income statement over the single-step income statement? The multiple-step income statement is less complex to prepare. The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system. Jan. 2 5 6 13 Purchased $18,200 of merchandise on account, FOB shipping point, terms 2/15, n/30. Paid freight of $190 on the January 2 purchase. Returned $2,750 of the merchandise purchased on January 2 Sold merchandise on account, $37,300, FOB destination, 1/10, n/30. The cost of goods sold was $22,400 Paid freight of $215 for the merchandise sold on January 13. Paid for the purchase of January 2 less the return and discount Received payment on account for the sale of January 13 less the discount. 15 17 23 Journalize the entries to record the transactions of Air Systems Company. Refer to the Chart of Accounts for exact wording of account titles. The following were selected from among the transactions completed by Babcock Company during November of the current year: Nov. 3 Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 30%, terms FOB destination, 2/10, n/30. Sold merchandise for cash, $38,210. The cost of the goods sold was $20,810. 4 Purchased merchandise on account from Papoose Creek Co., $51,550, terms FOB shipping point, 2/10, n/30, with prepaid freight of $730 added to the invoice 13 14 15 23 24 Returned $14,000 ($20,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co. Sold merchandise on account to Quinn Co., $15,010 with terms n/15. The cost of the goods sold was $10,190 Paid Moonlight Co. on account for purchase of November 3, less return of November 6. Sold merchandise on VISA, $231,570. The cost of the goods sold was $142,060. Paid Papoose Creek Co. on account for purchase of November 5. Received cash on account from sale of November 8 to Quinn Co. Sold merchandise on account to Rabel Co., S54,800, terms 1/10, n/30. The cost of the goods sold was $33,850. Paid VISA service fee of $3,580. Paid Quinn Co. a cash refund of $6,420 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,140. 28 30 Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Labels Administrative expenses Current assets Current liabilities For the Year Ended May 31, 2018 Long-term liabilities May 31, 2018 Operating expenses Other revenue and expense Property, plant, and equipment Selling expenses Amount Descriptions Change in retained earnings Gross profit Income from operations Dividends Net income Net income for the year Net loss Net loss for the year Note payable (current portion) Retained earnings, June 1, 2017 Retained earnings, May 31, 2018 Total administrative expenses Total assets Total current assets Total current liabilities Total liabilities Total liabilities and stockholders' equity Total operating expenses Total property, plant, and equipment Total selling expenses Total stockholders' equity
