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 Common Stock Cash Dividends Inventory Sales		$
Cost of merchandise sold Cash Cost of merchandise sold Interest Expense Note Payable Sales
Gross profit		$
Expenses:
Selling expenses Cost of merchandise sold Interest expense Sales discounts Sales returns and allowances Selling expenses	$
Administrative expenses Accumulated depreciation-building Administrative expenses Cost of merchandise sold Notes payable Sales returns and allowances
Total expenses
Income from operations Income from operations Loss from operations		$
Other expense:
Interest expense Administrative expenses Building Common Stock Interest expense Office Supplies
Net income Net income Net loss		$