Reference no: EM131715040

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 $ 750,000
Administrative Expenses 540,000
Building 2,500,000
Cash 175,000
Cost of Merchandise Sold 3,800,000
Interest Expense 10,000
Jan Brown, Capital 1,587,000
Jan Brown, Drawing 175,000
Merchandise Inventory $ 980,000
Notes Payable 250,000
Office Supplies 20,000
Salaries Payable 8,000
Sales 6,410,000
Selling Expenses 715,000
Store Supplies 90,000

Required:

a. Prepare a multiple-step income statement for the year ended October 31, 2016. Be sure to complete the heading of the statement. Refer 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.

Prepare a multiple-step income statement for the year ended October 31, 2016. Be sure to complete the heading of the statement. 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.