Single-Step Income Statement The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30, 20Y8: Cash $187,875 Retained Earnings $ 571,050 Accounts Receivable 337,500 Dividends 281,250 Inventory 855,000 Sales 8,025,750 Estimated Returns Inventory 78,750 Cost of Goods Sold 4,893,750 Office Supplies 33,750 Sales Salaries Expense 874,800 Prepaid Insurance 27,000 Advertising Expense 103,275 Office Equipment 259,200 Depreciation Expense— Store Equipment 18,675 Accumulated Depreciation— Office Equipment 111,375 Miscellaneous Selling Expense 4,500 Store Equipment 1,150,875 Office Salaries Expense 174,150 Accumulated Depreciation— Store Equipment 420,075 Rent Expense 89,775 Accounts Payable 109,350 Insurance Expense 51,638 Customer Refunds Payable 78,750 Depreciation Expense— Office Equipment 36,450 Salaries Payable 21,600 Office Supplies Expense 3,712 Note Payable (final payment due in five years) 121,500 Miscellaneous Administrative 4,275 Common Stock 33,750 Interest Expense 27,000 Instructions: 1. Prepare a single-step income statement in the format shown in Exhibit 8. 2. Prepare a statement of stockholders' equity. No common stock was issued during the year. For those boxes in which no entry is required, leave the box blank.
Single-Step Income Statement The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30, 20Y8: Cash $187,875 Retained Earnings $ 571,050 Accounts Receivable 337,500 Dividends 281,250 Inventory 855,000 Sales 8,025,750 Estimated Returns Inventory 78,750 Cost of Goods Sold 4,893,750 Office Supplies 33,750 Sales Salaries Expense 874,800 Prepaid Insurance 27,000 Advertising Expense 103,275 Office Equipment 259,200 Depreciation Expense— Store Equipment 18,675 Accumulated Depreciation— Office Equipment 111,375 Miscellaneous Selling Expense 4,500 Store Equipment 1,150,875 Office Salaries Expense 174,150 Accumulated Depreciation— Store Equipment 420,075 Rent Expense 89,775 Accounts Payable 109,350 Insurance Expense 51,638 Customer Refunds Payable 78,750 Depreciation Expense— Office Equipment 36,450 Salaries Payable 21,600 Office Supplies Expense 3,712 Note Payable (final payment due in five years) 121,500 Miscellaneous Administrative 4,275 Common Stock 33,750 Interest Expense 27,000 Instructions: 1. Prepare a single-step income statement in the format shown in Exhibit 8. 2. Prepare a statement of stockholders' equity. No common stock was issued during the year. For those boxes in which no entry is required, leave the box blank.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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Single-Step Income Statement
The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30, 20Y8:
Cash | $187,875 | $ 571,050 | |||||
337,500 | Dividends | 281,250 | |||||
Inventory | 855,000 | Sales | 8,025,750 | ||||
Estimated Returns Inventory | 78,750 | Cost of Goods Sold | 4,893,750 | ||||
Office Supplies | 33,750 | Sales Salaries Expense | 874,800 | ||||
Prepaid Insurance | 27,000 | Advertising Expense | 103,275 | ||||
Office Equipment | 259,200 | 18,675 | |||||
111,375 | Miscellaneous Selling Expense | 4,500 | |||||
Store Equipment | 1,150,875 | Office Salaries Expense | 174,150 | ||||
Accumulated Depreciation— Store Equipment | 420,075 | Rent Expense | 89,775 | ||||
Accounts Payable | 109,350 | Insurance Expense | 51,638 | ||||
Customer Refunds Payable | 78,750 | Depreciation Expense— Office Equipment | 36,450 | ||||
Salaries Payable | 21,600 | Office Supplies Expense | 3,712 | ||||
Note Payable (final payment due in five years) | 121,500 | Miscellaneous Administrative | 4,275 | ||||
Common Stock | 33,750 | Interest Expense | 27,000 |
Instructions:
1. Prepare a single-step income statement in the format shown in Exhibit 8.
2. Prepare a statement of
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