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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
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BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

INCOME STATEMENT, STATEMENT OF OWNER’S EQUITY, AND BALANCE SHEET Paulson’s Pet Store completed the Adjusted Trial Balance on page 600 for the year ended December 31, 20--. Owner’s equity as of January 1, 20--, was $504,320. The current portion of Note Payable is $2,000.

REQUIRED

  1. 1. Prepare a multiple-step income statement.
  2. 2. Prepare a statement of owner’s equity.
  3. 3. Prepare a balance sheet.

PROBLEM 15-8A

images

1.

To determine

Prepare a multi-step income statement of P Stores.

Explanation

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

Prepare a multi-step income statement.

PP Stores
Income Statement
For Year Ended December 31
ParticularsAmountAmountAmountAmount
Revenue from sales:
Sales$326,040
Less sales returns & allowances$5,360
Net sales$320,680
Cost of goods sold:
Purchases$162,640
Less: Purchase returns & allowances$4,080
           Purchase discounts$3,200 $7,280
Net purchases$155,360
Add: freight-in$1,600
Cost of goods purchased$156,960
Goods available for sale$156,960
Less: Ending ...

2.

To determine

Prepare statement of owners’ equity of PP Stores.

3.

To determine

Prepare a balance sheet of PP Stores.

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