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Multiple-Step Income Statement On March 31, 2018, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture wholesaler, are as
Multiple-Step Income Statement
On March 31, 2018, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture wholesaler, are as follows:
Accounts Receivable | $170,000 | Inventory | 1,027,250 | |
Accumulated DepreciationBuilding | 718,900 | Notes Payable | 262,700 | |
Expenses incurred in the administration or general operations of the business.Administrative Expenses | 532,050 | Office Supplies | 20,000 | |
Building | 2,549,300 | Retained Earnings | 1,295,350 | |
Cash | 173,150 | Salaries Payable | 8,050 | |
Common Stock | 305,600 | The total amount charged customers for merchandise sold, including cash sales and sales on account.Sales | 6,267,150 | |
The cost that is reported as an expense when merchandise is sold.Cost of Goods Sold | 3,647,950 | Expenses that are incurred directly in the selling of merchandise.Selling Expenses | 718,300 | |
Dividends | 183,200 | Store Supplies | 86,950 | |
Interest Expense | 9,950 |
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 merchandise sold
| ||
Gross profit | $ | |
Expenses: | ||
Selling expenses
| $ | |
Administrative expenses
| ||
Total expenses | ||
Income from operations
| $ | |
Other expense: | ||
Interest expense
| ||
Net income
| $ |
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