On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows: Accounts Receivable $170,000 Inventory $994,650 Accumulated Depreciation—Building 723,700 Notes Payable 275,900 Administrative Expenses 538,550 Office Supplies 19,350 Building 2,555,500 Retained Earnings 1,227,050 Cash 173,850 Salaries Payable 7,650 Common Stock 287,450 Sales 6,133,050 Cost of Goods Sold 3,807,400 Selling Expenses 723,300 Dividends 173,800 Store Supplies 86,050 Interest Expense 10,100 a. Prepare a multiple-step income statement for the fiscal year ended March 31, 20Y9. Royal Furnishings Company Income Statement For the Year Ended March 31, 20Y9 $fill in the blank 257924f5cfd3044_2 fill in the blank 257924f5cfd3044_4 Gross profit $fill in the blank 257924f5cfd3044_5 Expenses: $fill in the blank 257924f5cfd3044_7 fill in the blank 257924f5cfd3044_9 Total expenses fill in the blank 257924f5cfd3044_10 $fill in the blank 257924f5cfd3044_12 Other expense: fill in the blank 257924f5cfd3044_14 $fill in the blank 257924f5cfd3044_16 b. What is a major advantage of the multiple-step income statement over the single-step income statement?
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows:
Accounts Receivable $170,000 Inventory $994,650 Accumulated Depreciation —Building723,700 Notes Payable 275,900 Administrative Expenses 538,550 Office Supplies 19,350 Building 2,555,500 Retained Earnings 1,227,050 Cash 173,850 Salaries Payable 7,650 Common Stock 287,450 Sales 6,133,050 Cost of Goods Sold 3,807,400 Selling Expenses 723,300 Dividends 173,800 Store Supplies 86,050 Interest Expense 10,100 a. Prepare a multiple-step income statement for the fiscal year ended March 31, 20Y9.
Royal Furnishings Company Income Statement For the Year Ended March 31, 20Y9 $fill in the blank 257924f5cfd3044_2 fill in the blank 257924f5cfd3044_4 Gross profit $fill in the blank 257924f5cfd3044_5 Expenses: $fill in the blank 257924f5cfd3044_7 fill in the blank 257924f5cfd3044_9 Total expenses fill in the blank 257924f5cfd3044_10 $fill in the blank 257924f5cfd3044_12 Other expense: fill in the blank 257924f5cfd3044_14 $fill in the blank 257924f5cfd3044_16 b. What is a major advantage of the multiple-step income statement over the single-step income statement?
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