Chapter 5 Accounting for Merchandising EX 5-22 Income statement for merchandiser The following expenses were incurred by a merchandising business during tn. section of the income statement should each be reported: (A) selling, (B) 1. Advertising expense 2. Depreciation expense on store equipment 3. Insurance expense on office equipment 4. Interest expense on notes payable 5. Rent expense on office building 6. Salaries of office personnel 7. Salary of sales manager bJ 3 the year. In which expense administrative, or (C) other? 8. Sales supplies used EX 5-23 Determining amounts for items omitted from income statement One item is omitted in each of the following four lists of income statement data. the amounts of the missing items, identifying them by letter 3 Chase Company $735,000 Jessup Inc. Sales Cost of goods sold Gross profit Osterman Company $8,220,000 Snyder Co. $157,850 44,500 15,500 110,000 2,300,000 EX 5-24 Multiple-step income statement On March 31, 2018, the balances of the accounts appearing in ti Company, a furniture wholesaler, are as follows: Obj. 3 e ledger of Royal Furnishings Accounts Receivable Accumulated Depreciation-Building Administrative Expenses s 170,000 Inventory $ 980,000 250,000 20,000 1,987,000 8,000 8,245,000 575,000 750,000 Notes Payable 435,000 Office Supplies 3,500,000 Retained Earnings uilding Cash Common Stock Cost of Goods Sold Dividends Interest Expense 80,000 Salaries Payable 300,000 Sales 5,500,000 Selling Expenses 175,000 Store Supplies 90,000 15,000 . Prepare a multiple-step income statement for the year ended March 31, 2018. Compare the major advantages and disadvantages of the multiple-step and single- step forms of income statements Obj. 3 X 5-25 Multiple-step income statement he following income statement for Curbstone Company was prepared for the year ended ugust 31, 2018: Curbstone Company Income Statement $8,595,000 6,110,000 $2,485,000 For the Year Ended August 31, 2018 Sales . . . . Income from operations Expenses $800,000 575,000 425,000