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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
Section
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 Backlund Farm Supply completed the Adjusted Trial Balance on page 607 for the year ended December 31, 20--. Owner’s equity as of January 1, 20--, was $507,752. The current portion of Note Payable is $3,000.

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 15-8B

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1.

To determine

Prepare a multi-step income statement of BFS.

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.

BFS
Income Statement
For Year Ended December 31
ParticularsAmountAmountAmountAmount
Revenue from sales:
Sales$358,644
Less sales returns & allowances$5,896
Net sales$352,748
Cost of goods sold:
Purchases$178,904
Less: Purchase returns & allowances$4,488
           Purchase discounts$3,520 $8,008
Net purchases$170,896
Add: freight-in$1,760
Cost of goods purchased$172,656
Goods available for sale$172,656
Less: Ending est...

2.

To determine

Prepare statement of owners’ equity of BFS.

3.

To determine

Prepare a balance sheet of BFS.

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