The adjusted trial balance of Poorten 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 use fullness of each one.
(d) Are the expenses in the statements classified by nature or by function? Explain.

Transcribed Image Text:

POORTEN WHOLESALE LTD. Adjusted Trial Balance November 30, 2012 Credit Notes receivable Accumulated depreciation-buildings Accumulated depreciation-equipment 3 850,300 Sales returns and allowances 170,670 1,620 $1,130,920 $ 1,1 30,920