prepare an income statement for the current year using the functional presentation with supporting notes. Problem 9-10 (IAA)Ronald Company provided the following information for thecurrent year:PurchasesPurchase returns and allowances5,250,000150,000250,000Rental incomeSelling expenses:Freight out175,000Salesmen's commission650,000Depreciation - store equipment125,000Merchandise inventory, January 11,000,0001,500,000Merchandise inventory, December 31Sales7,850,000Sales returns and allowances140,000Sales discounts10,000Administrative expenses:Officers' salaries500,000Depreciation office equipment300,000Freight in500,000Income tax250,000Loss on sale of equipment50,000Purchase discounts100,000Dividend revenue1150,000Loss on sale of investment50,000Required:a. Prepare an income statement for the current year usingthe functional presentation with supporting notes.b. Prepare an income statement for the current year usingthe natural presentation with supporting notes.

Income Statement (Functional View) Note Amount Amount Net Sales 1 7700000 Less: Cost of…

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Business

Accounting

prepare an income statement for the current year using the functional presentation with supporting notes.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

prepare an income statement for the current year using the functional presentation with supporting notes.

Problem 9-10 (IAA)
Ronald Company provided the following information for the
current year:
Purchases
Purchase returns and allowances
5,250,000
150,000
250,000
Rental income
Selling expenses:
Freight out
175,000
Salesmen's commission
650,000
Depreciation - store equipment
125,000
Merchandise inventory, January 1
1,000,000
1,500,000
Merchandise inventory, December 31
Sales
7,850,000
Sales returns and allowances
140,000
Sales discounts
10,000
Administrative expenses:
Officers' salaries
500,000
Depreciation office equipment
300,000
Freight in
500,000
Income tax
250,000
Loss on sale of equipment
50,000
Purchase discounts
100,000
Dividend revenue
1
150,000
Loss on sale of investment
50,000
Required:
a. Prepare an income statement for the current year using
the functional presentation with supporting notes.
b. Prepare an income statement for the current year using
the natural presentation with supporting notes.

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