Single-Step Income Statement The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30, 20Y8: Cash $187,875 Retained Earnings $ 571,050 Accounts Receivable 337,500 Dividends 281,250 Inventory 855,000 Sales 8,025,750 Estimated Returns Inventory 78,750 Cost of Goods Sold 4,893,750 Office Supplies 33,750 Sales Salaries Expense 874,800 Prepaid Insurance 27,000 Advertising Expense 103,275 Office Equipment 259,200 Depreciation Expense— Store Equipment 18,675 Accumulated Depreciation— Office Equipment 111,375 Miscellaneous Selling Expense 4,500 Store Equipment 1,150,875 Office Salaries Expense 174,150 Accumulated Depreciation— Store Equipment 420,075 Rent Expense 89,775 Accounts Payable 109,350 Insurance Expense 51,638 Customer Refunds Payable 78,750 Depreciation Expense— Office Equipment 36,450 Salaries Payable 21,600 Office Supplies Expense 3,712 Note Payable (final payment due in five years) 121,500 Miscellaneous Administrative 4,275 Common Stock 33,750 Interest Expense 27,000 Instructions: 1. Prepare a single-step income statement in the format shown in Exhibit 8. 2. Prepare a statement of stockholders' equity. No common stock was issued during the year. For those boxes in which no entry is required, leave the box blank.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Single-Step Income Statement

The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30, 20Y8:

Cash	$187,875	Retained Earnings	$ 571,050
Accounts Receivable	337,500	Dividends	281,250
Inventory	855,000	Sales	8,025,750
Estimated Returns Inventory	78,750	Cost of Goods Sold	4,893,750
Office Supplies	33,750	Sales Salaries Expense	874,800
Prepaid Insurance	27,000	Advertising Expense	103,275
Office Equipment	259,200	Depreciation Expense— Store Equipment	18,675
Accumulated Depreciation— Office Equipment	111,375	Miscellaneous Selling Expense	4,500
Store Equipment	1,150,875	Office Salaries Expense	174,150
Accumulated Depreciation— Store Equipment	420,075	Rent Expense	89,775
Accounts Payable	109,350	Insurance Expense	51,638
Customer Refunds Payable	78,750	Depreciation Expense— Office Equipment	36,450
Salaries Payable	21,600	Office Supplies Expense	3,712
Note Payable (final payment due in five years)	121,500	Miscellaneous Administrative	4,275
Common Stock	33,750	Interest Expense	27,000

Instructions:

1. Prepare a single-step income statement in the format shown in Exhibit 8.

2. Prepare a statement of stockholders' equity. No common stock was issued during the year. For those boxes in which no entry is required, leave the box blank.

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