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Problem 9-10 (IAA) Ronald Company provided the following information for the current year: Purchases Purchase returns and allowances Rental income Selling expenses: Freight out Salesmen's commission Depreciation-store equipment Merchandise inventory, January 1 Merchandise inventory, December 31 Sales Sales returns and allowances Sales discounts Administrative expenses: Officers' salaries Depreciation office equipment Freight in Income tax Loss on sale of equipment Purchase discounts Dividend revenue Loss on sale of investment 5,250,000 150,000 250,000 175,000 650,000 125,000 1,000,000 1,500,000 7,850,000 140,000 10,000 500,000 300,000 500,000 250,000 50,000 100,000 150,000 50,000 Required: a. Prepare an income statement for the current year using the functional presentation with supporting notes. b. Prepare an income statement for the current year using the natural presentation with supporting notes.

Problem 9-10 (IAA) Ronald Company provided the following information for the current year: Purchases Purchase returns and allowances Rental income Selling expenses: Freight out Salesmen's commission Depreciation-store equipment Merchandise inventory, January 1 Merchandise inventory, December 31 Sales Sales returns and allowances Sales discounts Administrative expenses: Officers' salaries Depreciation office equipment Freight in Income tax Loss on sale of equipment Purchase discounts Dividend revenue Loss on sale of investment 5,250,000 150,000 250,000 175,000 650,000 125,000 1,000,000 1,500,000 7,850,000 140,000 10,000 500,000 300,000 500,000 250,000 50,000 100,000 150,000 50,000 Required: a. Prepare an income statement for the current year using the functional presentation with supporting notes. b. Prepare an income statement for the current year using the natural presentation with supporting notes.

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...
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Kindly provide the following requirements for problem 9-10.
Problem 9-10 (IAA) Ronald Company provided the following information for the current year: Purchases Purchase returns and allowances Rental income Selling expenses: Freight out Salesmen's commission Depreciation-store equipment Merchandise inventory, January 1 Merchandise inventory, December 31 Sales Sales returns and allowances Sales discounts Administrative expenses: Officers' salaries Depreciation office equipment Freight in Income tax Loss on sale of equipment Purchase discounts Dividend revenue Loss on sale of investment 5,250,000 150,000 250,000 175,000 650,000 125,000 1,000,000 1,500,000 7,850,000 140,000 10,000 500,000 300,000 500,000 250,000 50,000 100,000 150,000 50,000 Required: a. Prepare an income statement for the current year using the functional presentation with supporting notes. b. Prepare an income statement for the current year using the natural presentation with supporting notes.
Transcribed Image Text:Problem 9-10 (IAA) Ronald Company provided the following information for the current year: Purchases Purchase returns and allowances Rental income Selling expenses: Freight out Salesmen's commission Depreciation-store equipment Merchandise inventory, January 1 Merchandise inventory, December 31 Sales Sales returns and allowances Sales discounts Administrative expenses: Officers' salaries Depreciation office equipment Freight in Income tax Loss on sale of equipment Purchase discounts Dividend revenue Loss on sale of investment 5,250,000 150,000 250,000 175,000 650,000 125,000 1,000,000 1,500,000 7,850,000 140,000 10,000 500,000 300,000 500,000 250,000 50,000 100,000 150,000 50,000 Required: a. Prepare an income statement for the current year using the functional presentation with supporting notes. b. Prepare an income statement for the current year using the natural presentation with supporting notes.
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