Sales Tax A sale of merchandise on account for $14,000 is subject to an 8 sales tax a Should the sales tax be recorded at the time of sale or when payment is received At the time of saleWhen payment is received b What is the amount recorded as sales $fill in the blank 2 c What is the amount debited to Accounts Receivable $fill in the blank 3 d What is the title of the account to which the $1,120 ($14,000 8 ) is credited Sales Tax ExpenseSales Tax PayableAccounts PayableFees Earned Multiple Step Income Statement On March 31, 20Y4, the balances of the accounts appearing in the ledger of Danns Furnishings Company, a furniture wholesaler, are as follows Accumulated DepreciationBuilding $771,600 Merchandise Inventory $952,550 Administrative Expenses 549,350 Notes Payable 250,850 Building 2,543,950 Office Supplies 19,400 Cash 181,450 Salaries Payable 7,800 Cost of Merchandise Sold 3,677,100 Sales 6,433,600 Interest Expense 10,500 Selling Expenses 712,250 Kathy Melman, Capital 1,643,400 Store Supplies 88,850 Kathy Melman, Drawing 183,450 a Prepare a multiple step income statement for the year ended March 31, 20Y4 Danns Furnishings Company Income Statement For the Year Ended March 31, 20Y4 CashInterest expenseKathy Melman, DrawingSalesSales discounts $ Select BuildingCost of merchandise soldInterest expenseNotes payableOffice supplies Select Gross profit $fill in the blank 2bb668fddfbbfb4 5 Expenses Cost of merchandise soldKathy Melman, capitalKathy Melman, drawingSales discountsSelling expenses $ Select Administrative expensesBuildingCashOffice suppliesSalaries payable Select Total expenses fill in the blank 2bb668fddfbbfb4 10 Income from operationsLoss from operations $ Select Other expense Cost of merchandise soldInterest expenseKathy Melman, drawingSalaries payableSales Select Net incomeNet loss $ Select b 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 revenues The multiple step income statement is less complex to prepare The multiple step income statement shows the relationship of gross profit to sales The multiple step income statement clearly presents the value of total expenses Asset Turnover The Home Depot reported the following data (in millions) in its recent financial statements Year 2 Year 1 Sales $108,203 $100,904 Total assets at the end of the year 44,003 44,529 Total assets at the beginning of the year 44,529 42,966 a Determine the asset turnover for The Home Depot for Year 2 and Year 1 Round to two decimal places Year 2 fill in the blank 1 Year 1 fill in the blank 2 b What do these turnover indicate concerning the trend in the ability of The Home Depot to effectively use its assets to generate sales The company is becoming less effective in using its assets to generate revenues The company is becoming more effective in using its assets to generate revenues

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Sales Tax A sale of merchandise on account for $14,000 is subject to an 8% sales tax. a. Should the sales tax be recorded at

Sales Tax

A sale of merchandise on account for $14,000 is subject to an 8% sales tax.

a. Should the sales tax be recorded at the time of sale or when payment is received?

At the time of saleWhen payment is received

b. What is the amount recorded as sales? $fill in the blank 2

c. What is the amount debited to Accounts Receivable? $fill in the blank 3

d. What is the title of the account to which the $1,120 ($14,000 8%) is credited?

Sales Tax ExpenseSales Tax PayableAccounts PayableFees Earned

Multiple-Step Income Statement

On March 31, 20Y4, the balances of the accounts appearing in the ledger of Danns Furnishings Company, a furniture wholesaler, are as follows:

Accumulated DepreciationBuilding	$771,600	Merchandise Inventory	$952,550
Administrative Expenses	549,350	Notes Payable	250,850
Building	2,543,950	Office Supplies	19,400
Cash	181,450	Salaries Payable	7,800
Cost of Merchandise Sold	3,677,100	Sales	6,433,600
Interest Expense	10,500	Selling Expenses	712,250
Kathy Melman, Capital	1,643,400	Store Supplies	88,850
Kathy Melman, Drawing	183,450

a. Prepare a multiple-step income statement for the year ended March 31, 20Y4.

Danns Furnishings Company Income Statement For the Year Ended March 31, 20Y4
CashInterest expenseKathy Melman, DrawingSalesSales discounts		$- Select -
BuildingCost of merchandise soldInterest expenseNotes payableOffice supplies		- Select -
Gross profit		$fill in the blank 2bb668fddfbbfb4_5
Expenses:
Cost of merchandise soldKathy Melman, capitalKathy Melman, drawingSales discountsSelling expenses	$- Select -
Administrative expensesBuildingCashOffice suppliesSalaries payable	- Select -
Total expenses		fill in the blank 2bb668fddfbbfb4_10
Income from operationsLoss from operations		$- Select -
Other expense:
Cost of merchandise soldInterest expenseKathy Melman, drawingSalaries payableSales		- Select -
Net incomeNet loss		$- Select -

b. 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 revenues.The multiple-step income statement is less complex to prepare.The multiple-step income statement shows the relationship of gross profit to sales.The multiple-step income statement clearly presents the value of total expenses.

Asset Turnover

The Home Depot reported the following data (in millions) in its recent financial statements:

Year 2 Year 1

Sales $108,203 $100,904

Total assets at the end of the year 44,003 44,529

Total assets at the beginning of the year 44,529 42,966

a. Determine the asset turnover for The Home Depot for Year 2 and Year 1. Round to two decimal places.

Year 2: fill in the blank 1

Year 1: fill in the blank 2

b. What do these turnover indicate concerning the trend in the ability of The Home Depot to effectively use its assets to generate sales?

The company is becoming less effective in using its assets to generate revenues.The company is becoming more effective in using its assets to generate revenues.