Reference no: EM132450845
Accounting Extra Credit Assignment in MyAccountingLab
Requirement 1: Prepare a single-step income statement. (Enter the account names exactly as shown in the information provided. Check your spelling carefully and do not abbreviate.)
Grade A Steak Company
Income Statement
Quarter Ended April 30, 2018
Grade A Steak Company uses a perpetual inventory system. The records of Grade A Steak Company list the following selected accounts for the quarter ended
April 30, 2018 : Interest Revenue $ 600
Accounts Payable $ 17,500
Merchandise Inventory 45,700
Accounts Receivable 35,600
Notes Payable, long-term 44,000
Accumulated Depreciation-Equipment 36,800
Salaries Payable 2,600
Common Stock 35,000
Net Sales Revenue 296,000
Retained Earnings 32,730
Rent Expense (Selling) 21,800
Dividend 24,000
Salaries Expense (Administrative) 1,500
Cash 7,200
Office Supplies 5,700
Cost of Goods Sold 162,800
Unearned Revenue 13,400
Equipment 133,000
Interest Expense 2,400
Interest Payable 1,100
Depreciation Expense-Equipment (Administrative) 1,330
Rent Expense (Administrative) 9,500
Utilities Expense (Administrative) 4,300
Salaries Expense (Selling) 6,100
Delivery Expense (Selling) 3,500
Utilities Expense (Selling) 10,800
Requirement 2. Prepare a multi-step income statement.
- Begin by completing the statement through the gross profit, then calculate operating income in the second step and net income in the final step. (Enter Selling Expenses before Administrative Expenses. Use a minus sign or parentheses to show other expenses. Enter the account names exactly as shown in the information provided. Check your spelling carefully and do not abbreviate.)