EX 06.25

a. Prepare a multiple-step income statement for the year ended March 31, 20Y4. Be sure to complete the statement heading. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be

positive.

b. What is a major advantage of the multiple-step income stalement over the single-step income statement?

Multiple-Step Income Statement Instructions Labels and Amount Descriptions Income Statement Final Question Instructions On March 31, 204, the balances of the accounts appearing in the ledger of Danns Furnishings Company, a turnure wholesaler, are as follows Accumulated Depreciation Building $740,900 Administrative Expenses 526,350 Building 2.507.600 Cash 180 350 Cost of Merchandise Sold 3.941.800 Interest Expense 10,500 Kathy Melman, Captal 1,611,350 Kathy Melman, Drawing 170,000 Merchandise Inventory 971,350 Notes Payable 250 200 Office Supplies 20.950 Satarios Payable 7.850 Sales 6,663 950 Selling Expenses 741,050 Store Supplies 93.000 Required: Prepare a multiple-stop income statement for the your ended March 31, 2014 Be sure to complete the statement reading Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that resunta in a negative amount For examplo: Net toss should be negativa Experies should be positive colon () will automatically appear it is required b. What is a major advantage of the multiple-step income statement over the single-step income statement? Multiple-Step Income Statement Instructions Labels and Amount Descriptions Income Statement Final Question Labels and Amount Descriptions Labels For the Year Ended March 31, 2014 March 31, 2014 Expenses Other expense Amount Descriptions Gross profit Income from operations Net income Net loss Total assets Total liabilities Total expenses Total owner's equity