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Multiple-Step Income Statement On March 31, 2018, the balances of the accounts appearing in the ledger of...

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Accounting

  1. Multiple-Step Income Statement

    On March 31, 2018, the balances of the accounts appearing in theledger of Royal Furnishings Company, a furniture wholesaler, are asfollows:

    <
    Accounts Receivable$170,000Inventory980,000
    Accumulated Depreciation—Building$750,000Notes Payable250,000
    Administrative Expenses435,000Office Supplies20,000
    Building3,500,000Retained Earnings1,987,000
    Cash80,000Salaries Payable8,000
    Common Stock300,000Sales8,245,000
    Cost of Goods Sold5,500,000Selling Expenses575,000
    Dividends175,000Store Supplies90,000
    Interest Expense15,000

    a. Prepare a multiple-step income statement forthe year ended March 31, 2018.

    RoyalFurnishings Company
    IncomeStatement
    For the YearEnded March 31, 2018
    $
    Gross profit$
    Expenses:
    $
    Total expenses
    $
    Other revenue andexpense:
    $

    b. What is a major advantage of themultiple-step income statement over the single-step incomestatement?

Answer & Explanation Solved by verified expert
3.8 Ratings (411 Votes)
Answer aThe multiple income statement is prepared belowAnswer bThe major advantage of multiple step income statement is that    See Answer
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