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Multiple-Step Income Statement On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as
Multiple-Step Income Statement
On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows:
Accounts Receivable | $170,000 | Inventory | $984,850 | |
Accumulated DepreciationBuilding | 764,100 | Notes Payable | 291,450 | |
Administrative Expenses | 563,500 | Office Supplies | 20,600 | |
Building | 2,413,200 | Retained Earnings | 1,314,000 | |
Cash | 181,550 | Salaries Payable | 8,050 | |
Common Stock | 296,550 | Sales | 6,506,850 | |
Cost of Goods Sold | 3,912,250 | Selling Expenses | 732,000 | |
Dividends | 167,050 | Store Supplies | 87,550 | |
Interest Expense | 9,600 |
a. Prepare a multiple-step income statement for the fiscal year ended March 31, 20Y9.
Royal Furnishings Company | ||
Income Statement | ||
For the Year Ended March 31, 20Y9 | ||
Gross profit | ||
Expenses: | ||
Total expenses | ||
Other expense: | ||
b. What is a major advantage of the multiple-step income statement over the single-step income statement? |
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