Reference no: EM13906180

On October 31, 2016, the balances of the accounts appearing in the ledger of Prestige Furnishings Company, a furniture wholesaler, are as follows:

Accumulated Depreciation-Building    $746,350

Administrative Expenses    515,750

Building    2,419,500

Cash   168,150

Common Stock   300,500

Cost of Merchandise Sold   3,925,500

Dividends   179,100

Interest Expense    9,950

Merchandise Inventory   1,020,900

Notes Payable    259,350

Office Supplies   19,150

Retained Earnings   1,343,400

Salaries Payable   7,600

Sales   6,144,850

Selling Expenses   732,500

Store Supplies   92,700

Required:

A. Prepare a multiple-step income statement for the year ended October 31, 2016. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.

Labels 

For the Year Ended October 31, 2016 

October 31, 2016 

Operating expenses 

Other income and expense 

Amount Descriptions 

Gross profit 

Income from operations 

Net income 

Net loss 

Total assets 

Total liabilities 

Total operating expenses 

Total stockholders’ equity