EXPENSE STATEMENTS

Using the FIFO method and the perpetual inventory system, the company recorded initial inventory, purchases, and sales.

Single-stage or multi-stage income and expense statements Instructions After you have read and understood the learning resources in this module, work through the following exercises using Chapter 6, \"Accounting for Merchandising Businesses," from the textbook. You must include a cover page and references in APA style. Part 1. The company Muebles de la Montana has the following transactions in its ledger. Make a multipleistep income statement. ACCOUNT BALANCE ACCOUNT BALANCE Cash $75,000 Sales $1,650,000 Accumulated Depreciation-Truck 15,000 Account Receivable 50,000 Building 550,000 Note Payable 45,000 Truck 35,000 Joe Doe, Capital 500,000 Cost of Merchandise Sold 650,000 Joe Doe, Drawings 20,000 Advertising Expense 12,000 Administrative Expense 3,300 Utilities Expense 1,200 Telephone Expense 2,000 Supplies 4,500 Salaries Expense 29,000 Salaries Payable 3,000 Equipment 26,000 Part 2. Prepare a single-step income statement for a computer sales and equipment rental company. ACCOUNT BALANCE Sales $ 6,110,760 Interest Expense 1,550 Administrave Expense 10,500 Cost of Merchandise Sold 3,550,000 Advertising Expense 3,500 Rent Revenue 24,000 Merchandise Inventory 7,000,000 Utilities Expense 4,500 Part 3. Prepare a multipleistep income statement for an auto parts company. Accumulated Depreciation-Building $18,000 Account Receivable $52,000 Building 500,000 Note Payable 54,000 Sales 8,020,000 Joe Doe, Capital 800,000 Cost of Merchandise Sold 620,000 Joe Doe, Drawings 18,000 Merchandise Inventory 230,000 Administrative Expense 7,500 Utilities Expense 1,700 Telephone Expense 2,000 Supplies 4,800 Salaries Expense 15,000 Salaries Payable 9,000 Equipment 30,000