The following account titles and balances were taken from the adjusted trial balance of King Company for Year 2. The company uses the periodic inventory system. Account TitleBalanceSales returns and allowances$ 9,100Miscellaneous expense910Transportation-out11,350Sales331,000Advertising expense12,300Salaries expense58,500Transportation-in6,750Purchases161,000Interest expense6,100Merchandise inventory, January 119,100Rent expense20,750Merchandise inventory, December 3121,200Purchase returns and allowances3,250Loss on sale of land5,100Utilities expense11,500Requireda. Prepare a schedule to determine the amount of cost of goods sold.b. Prepare a multistep income statement.c. Prepare a single-step income statement.I will appreciate if you answer this question by filling out the following table.I filled them out but I'm not sure with the answers I have just pui in.Thanks in advance Prepare a single-step income statement. (Enter amounts to be deducted and losses with a minus sign.)SalesKING COMPANYIncome StatementFor the Year Ended December 31, Year 2Sales returns and allowancesNet salesOperating expensesCost of goods soldMiscellaneous expenseTransportation-outAdvertising expenseSalaries expenseRent expenseTotal expensesNon-operating itemsInterest expenseLoss on sale of landNet income (loss)$331,000(9,100)$ 162,40091011,35012,30058,50029,750$ 321,900$(275,210)6,1005,100057,890 Prepare a multistep income statement. (Enter amounts to be deducted and losses with a minus sign.)SalesKING COMPANYIncome StatementFor the Year Ended December 31, Year 2Sales revenueSales returns and allowancesNet salesCost of goods soldGross marginOperating expensesMiscellaneous expenseTransportation-outAdvertising expenseSalaries expenseRent expenseUtilities expenseTotal operating expenseOperating incomeNon-operating itemsInterest expenseLoss on sale of land$$331,000(9,100)91011,35012,30058,50020,75011,500$$$$321,900162,400159,500(115,310)44,1906,1005,100

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Description: The following account titles and balances were taken from the adjusted trial balance of King Company for Year 2. The company uses the periodic inventory system. Account TitleBalanceSales returns and allowances$ 9,100Miscellaneous expense910Transporta

The financial statement that examines the financial performance of a corporate entity over a…

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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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The following account titles and balances were taken from the adjusted trial balance of King Company for Year 2. The company uses the periodic inventory system.

Account Title	Balance
Sales returns and allowances	$ 9,100
Miscellaneous expense	910
Transportation-out	11,350
Sales	331,000
Advertising expense	12,300
Salaries expense	58,500
Transportation-in	6,750
Purchases	161,000
Interest expense	6,100
Merchandise inventory, January 1	19,100
Rent expense	20,750
Merchandise inventory, December 31	21,200
Purchase returns and allowances	3,250
Loss on sale of land	5,100
Utilities expense	11,500

Required
a. Prepare a schedule to determine the amount of cost of goods sold.
b. Prepare a multistep income statement.
c. Prepare a single-step income statement.

I will appreciate if you answer this question by filling out the following table.I filled them out but I'm not sure with the answers I have just pui in.Thanks in advance

Prepare a single-step income statement. (Enter amounts to be deducted and losses with a minus sign.)
Sales
KING COMPANY
Income Statement
For the Year Ended December 31, Year 2
Sales returns and allowances
Net sales
Operating expenses
Cost of goods sold
Miscellaneous expense
Transportation-out
Advertising expense
Salaries expense
Rent expense
Total expenses
Non-operating items
Interest expense
Loss on sale of land
Net income (loss)
$
331,000
(9,100)
$ 162,400
910
11,350
12,300
58,500
29,750
$ 321,900
$
(275,210)
6,100
5,100
0
57,890

Prepare a multistep income statement. (Enter amounts to be deducted and losses with a minus sign.)
Sales
KING COMPANY
Income Statement
For the Year Ended December 31, Year 2
Sales revenue
Sales returns and allowances
Net sales
Cost of goods sold
Gross margin
Operating expenses
Miscellaneous expense
Transportation-out
Advertising expense
Salaries expense
Rent expense
Utilities expense
Total operating expense
Operating income
Non-operating items
Interest expense
Loss on sale of land
$
$
331,000
(9,100)
910
11,350
12,300
58,500
20,750
11,500
$
$
$
$
321,900
162,400
159,500
(115,310)
44,190
6,100
5,100

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