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on the income by a merchandising business during the year. In which expense of statement should each be reported: statement should each be reported: (A)

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on the income by a merchandising business during the year. In which expense of statement should each be reported: statement should each be reported: (A) selling, (B) administrative, or (C) other 1. Advertising expense 2. Depreciation expense on store equipment 3. Insurance expense on office equipment 4. Interest expense on notes payable 5. Rent expense on office building 6. Salaries of office personnel 7. Salary of sales manager 8. Sales supplies used B) EX 5-23 Determining amounts for items omitted from income statement One item is omitted in each of the following four lists of income statement data. Determine the amounts of the missing items, identifying them by letter Obj. 3 Chase Company $735,000 Jessup Inc. Osterman Company $8,220,000 Snyder Co. Sales Cost of goods sold Gross profit $157,850 42,150 44500 15,500 110,000 EX 5-24 Multiple-step income statement ne: On March 31, 2018, the balances of the accounts appearing in the ledger of 00 Company, a furniture wholesaler, are as follows: Obj. 3 Royal Furnishings Accounts Receivable Accumulated Depreciation-Building Administrative Expenses $170,000 Inventory $ 980,000 250,000 20,000 1,987,000 8,000 750,000 Notes Payable 435,000 Office Supplies 3,500,000 Retained Earnings Cash Common Stock Cost of Goods Sold 80,000 Salaries Payable 300,000 Sales 575,000 5,500,000 Selling Expenses 175,000 Store Supplies 90,000 Interest Expense 15,000 A. Prepare a multiple-step income statement for the year ended March 31, 2018. B.Compare the major advantages and disadvantages of the multiple-step and singl step forms of income statements. Obj. EX 5-25 Multiple-step income statement The following income statement for Curbstone Company was prepared for the year end August 31, 2018: Curbstone Company Income Statement For the Year Ended August 31, 2018 $8,595,000 6,110,000 $2,485,000 Cost of goods sold... Income from operations .. .. Expenses Sales $800,000 575,000 425,000 Administrative expenses 1,800,000

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