310 chapter 5 P5-3BA Preparing a single-step income state Learning Objectives 5.6 paring a single-step income statement, preparing a multi-step come statement, and computing the gross profit percentage e records of Farm Our Seal Co s t the following selected accounts for 2. Operating Income 593.120 the quarter ended April 30, 2018 Interest Revenue Merchandise Inventory Notes Payable, long-term Salaries Payable Net Sales Revenue Rent Expense (Selling) Salaries Expense (Administrative) Office Supplies Unearned Revenue Interest Expense Depreciation Expense Equipment (Administrative) Utilities Expense (Administrative) Delivery Expense (Selling) $ 400 Accounts Payable 45,000 Accounts Receivable 54,000 Accumulated Depreciation--Equipment 2,800 Common Stock 288,000 Retained Earnings 15,100 Dividends 2,000 Cash 6.500 Cost of Goods Sold 13,100 Equipment 2.100 Interest Payable 1,320 Rent Expense (Administrative) 4.600 Salaries Expense (Selling) 3,800 Utilities Expense (Selling) $ 17,700 38200 37,700 30,000 5,380 25,000 7.100 154,960 132,000 1,700 7.100 6,000 10,000 Learning Objective 8 Appendix 5B Requirements 1. Prepare a single-step income statement 2. Prepare a multi-step income statement 3. M. Doherty manaper of the company, strives to earn a gross profit percentage of at least 50. Did Farm Ouality achieve this goal? Show your calculations PSB-39A Journalizing purchase and sale transactions-periodic inventory system PSB-39A Journalizing purchase and sale trans Journalire the following transactions that occurred in March 2018 for Double Com- pany Assame Double uses the periodic inventory system. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Double estimates sales returns at the end of each month. Mar. 3 Purchased merchandise inventory on account from Sidecki Wholesalers, $5,500. Terms 2/15, n/EOM, FOB shipping point. 4 Paid freight bill of 570 on March 3 purchase. 4 Purchased merchandise inventory for cash of $1,100. 6 Returned 5900 of inventory from March 3 purchase. 8 Sold merchandise inventory to Herrick Company, $3,400, on account. Terms 1/15, n/35. 9 Purchased merchandise inventory on account from Tex Wholesalers, 55,600 Terms 2/10, 1/30, FOB destination 10 Made payment to Sidecki Wholesalers for goods purchased on March 3, less return and discount 12 Received payment from Herrick Company, less discount. 13 After negotiations, received a 5500 allowance from Tex Wholesalers. 15 Sold merchandise inventory to Jesper Company, $1,700, on account. Terms /EOM. 22 Made payment, less allowance, to Tex Wholesalers for goods purchased on March 9 23 Jesper Company returned $300 of the merchandise sold on March 15. 25 Sold merchandise inventory to Salter for $1,000 on account. Terms of 1/10, 1/30 was offered, FOB shipping point. 29 Received payment from Salter, less discount. 30 Received payment from Jesper Company, less return