PROBLEM 1: The ZZZ Company, Inc. sells office furniture. There are 100,000 shares of common stock outstanding. A list of their accounts and their balances at December 31, 2022 except for the Retained earnings account which is at 1- 1-22 are as follows: Debit Credit Cash $ 524,000 Accounts receivable 216,000 Net Plant & Equipment 348,000 Current Liabilities 360,000 Cost of goods sold 1,176,000 Income tax expenses 115,200 Common stock 1,080,000 Administrative expenses 216,000 Retained earnings, (January 1, 2022) 139,200 Sales revenue 2,184,000 Deferred revenue 20,000 Sales returns and allowances 84,000 Prepaid expenses 780,000 Interest expense 24,000 Wind damage loss 96,000 Selling expenses 204,000 Totals $3,783,200 $3,783,200 Required: Prepare a multiple-step income statement.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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PROBLEM 1: The ZZZ Company, Inc. sells office furniture. There are 100,000 shares of common stock outstanding. A list of their accounts and their balances at December 31, 2022 except for the Retained earnings account which is at 1- 1-22 are as follows: Debit Credit Cash $ 524,000 Accounts receivable 216,000 Net Plant & Equipment 348,000 Current Liabilities 360,000 Cost of goods sold 1,176,000 Income tax expenses 115,200 Common stock 1,080,000 Administrative expenses 216,000 Retained earnings, (January 1, 2022) 139,200 Sales revenue 2,184,000 Deferred revenue 20,000 Sales returns and allowances 84,000 Prepaid expenses 780,000 Interest expense 24,000 Wind damage loss 96,000 Selling expenses 204,000 Totals $3,783,200 $3,783,200 Required: Prepare a multiple-step income statement.
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