Question 4

st #3 Chapters 5 & 6 Labels and Amount Descriptions Instructions Final Question Income Statement Instructions On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: $752,300 Accumulated Depreciation-Building 540,650 Administrative Expenses 2,553,550 Building 167,750 Cash 3,964,300 Cost of Merchandise Sold 10,200 Interest Expense 1,515,650 Kathy Melman, Capital 169,200 Kathy Melman, Drawing 981,650 Merchandise Inventory 255,650 Notes Payable 20,150 Office Supplies 8,200 Salaries Payable 6,235,450 Sales 736,600 Selling Expenses 91,300 Store Supplies Required: a. Prepare a multiple-step income statement for the year ended March 31, 2019. Be sure to complete the heading of the statement. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon () will automatically appear if it is required. In the Other expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign. b. What is a major advantage of the multiple-step income statement over the single-step income statement? Labels and Amount Descriptions Labels For the Year Ended March 31, 2019 March 31, 2019 Operating expenses Other revenue and expense Amount Descriptions Gross profit Income from operations Net income Net loss Total assets Total liabilities Total operating expenses Total owner's equity Income Statement Prepare a multiple-step income statement for the year ended March 31, 2019. Be sure to complete the headinng of the statement. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. In the Other expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign. Racine Furnishings Company Income Statement (Label) 1 3 4 (Label) 5 6 7 9 (Label) 10 11 Final Question What is a major advantage of the multiple-step income statement over the single-step income statement? The multiple-step income statement clearly presents the value of total expenses. The multiple-step income statement shows the relationship of gross profit to sales. The multiple-step income statement is less complex to prepare. The multiple-step income statement clearly presents the value of total revenues. Previo Submit Test for Email Instructor All work saved. maining: 2:15:44