Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th
14th Edition
ISBN: 9781305878839
Author: Carl Warren, Jonathan Duchac, James M. Reeve
Publisher: Cengage Learning
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Textbook Question
Chapter 5, Problem 5.24EX
Multiple-step income statement
On March 31, 2018, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture wholesaler, are as follows:
| $ 170,000 | |
| Accumulated Depreciation—Building | 750,000 |
| Administrative Expenses | 435,000 |
| Building | 3,500,000 |
| Cash | 80,000 |
| Common Stock | 300,000 |
| Cost of Goods Sold | 5,500,000 |
| Dividends | 175,000 |
| Interest Expense | 15,000 |
| Inventory | $ 980,000 |
| Notes Payable | 250,000 |
| Office Supplies | 20,000 |
| 1,987,000 | |
| Salaries Payable | 8,000 |
| Sales | 8,245,000 |
| Selling Expenses | 575,000 |
| ore Supplies | 90,000 |
A. Prepare a multiple-step income statement for the year ended March 31, 2018.
B. Compare the major advantages and disadvantages of the multiple-step and single-step forms of income statements.
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Window World Company's income statement for the year ending December 31, 2024 included the following items:
Interest revenue
$65,500
Salaries expense
85,000
Cost of goods sold
217,600
The following balances have been excerpted from the company's comparative balance sheets:
31-Dec-24
31-Dec-23
Interest receivable
$9,100
$7,500
Salaries payable
8,900
4,200
Accounts payable
12,700
10,900
Inventory
36,100
32,500
The amount of cash paid by the companies for salaries in 2024 was
Select one:
$89,700.
$93,900.
$80,300.
$80,800.
Window World Company's income statement for the year ending December 31, 2024 included the following items:
Interest revenue
$65,500
Salaries expense
85,000
Cost of goods sold
217,600
The following balances have been excerpted from the company's comparative balance sheets:
31-Dec-24
31-Dec-23
Interest receivable
$9,100
$7,500
Salaries payable
8,900
4,200
Accounts payable
12,700
10,900
Inventory
36,100
32,500
The amount of cash paid by the company to suppliers in 2024 was
Select one:
$215,800.
$212,200.
$219,400.
$248,290.
Use the following excerpts from Zowleski Company’s financial information.
Dec. 31, 2018
Dec. 31, 2017
Cash
$103,100
$95,000
Accounts Receivable
22,100
22,900
Merchandise Inventory
140,000
131,000
Plant Assets
185,000
150,000
Accumulated Depreciation
(25,000)
(21,000)
Total Assets
$425,200
$377,900
Accounts Payable
$19,000
$21,000
Notes Payable
140,500
120,000
Common Stock
20,000
20,000
Retained Earnings
245,700
216,900
Total Liabilities and Equity
$425,200
$377,900
Additional Information:
Net Income for 2018
$28,800
Depreciation Expense for 2018 (Accumulated Depreciation Increase)
4,000
Plant Assets Purchased (Plant Assets Increase), Finance by Note
35,000
Notes Payable Increased by Amount of Plant Assets Purchase
35,000
Notes Payable Decreased by Amount of Principal…
Chapter 5 Solutions
Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - The credit period during which the buyer of...Ch. 5 - What is the meaning of (A) 1/15, n/60; (B) n/30;...Ch. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Who is responsible for freight when the terms of...Ch. 5 - Name three accounts that would normally appear in...Ch. 5 - Audio Outfitter Inc., which uses a perpetual...Ch. 5 - Assume that Audio Outfitter Inc. in Discussion...
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