The adjusted trial balance of Brigus Wholesale Ltd. contained the following accounts at November 30, the company's fiscal year end:

Instructions
(a) Prepare a single-step income statement.
(b) Prepare a multiple-step income statement.
(c) Compare the two statements and comment on the usefulness of each one.
(d) Are the expenses in the statements classified by nature or by function? Explain.

Transcribed Image Text:

BRIGUS WHOLESALE LTD Adjusted Trial Balance November 30, 2018 Debit Credit Cash Accounts receivable Notes receivable Inventory Supplies Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Accounts payable Income tax payablıe Unearned revenue Bank loan payable Common shares Retained earnings Sales $ 35,0oo 96,300 28,200 115,600 4,900 580,000 452,000 $ 45,20o 326,000 81,500 79,800 18,200 32,100 205,000o 500,000 546,700 2,234,800o Sales returns and allowances Sales discounts Cost of goods sold Administrative expenses Selling expenses Interest expense Interest revenue Income tax expense 12,800 11,400 1,387,200 366,000 286,000 12,300 2,800 32,400 $3,746,100 $3,746,100