Prepare a multi-step income statement for Prestige Traders and General Merchandise for the year ended December 31,2020 using the information listed below: • Cost of Sales - P 348,000 • Depreciation Expense - P 7,350 • Taxes – P 1,120 • Rent Expense -P 37,500 • Salaries Expense - P 150,000 • Sales - P 600,000 • Sales Discount - P 11,000 Sales Returns and Allowances - P 20,000 Supplies Expense -P 8,750 Use the space provided for your answer.

Prepare a multi-step income statement for Prestige Traders and General Merchandise for the year ended December 31,2020 using the information listed below: • Cost of Sales - P 348,000 • Depreciation Expense - P 7,350 • Taxes – P 1,120 • Rent Expense -P 37,500 • Salaries Expense - P 150,000 • Sales - P 600,000 • Sales Discount - P 11,000 Sales Returns and Allowances - P 20,000 Supplies Expense -P 8,750 Use the space provided for your answer.

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Description: Prepare a multi-step income statement for Prestige Traders and General Merchandise for the year endedDecember 31,2020 using the information listed below:Cost of Sales – P 348,000Sales - P 600,000• Sales Discount - P 11,000• Sales Returns and Allowan

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 48E

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Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
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