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16.              Using the following data, prepare a multistep income statement

Question : 16.              Using the following data, prepare a multistep income statement : 1410827

 

16.              Using the following data, prepare a multistep income statement for Matthew's Dry Goods for the month ended February 28, 2010.

 

Cost of Goods Sold

$15,000

General and Administrative Expenses

4,000

Net Sales

25,000

Selling Expenses

3,500

 

 

 

17.              Sean and Dylan Matthews are brothers who each own and operate sports memorabilia shops in neighboring towns. They decide to have a contest to see whose shop can be more profitable for the year. At year-end, Sean's records show sales of $105,000, cost of goods sold of $55,000, and operating expenses of $21,000. The records of Dylan's shop reveal sales of $108,000, cost of goods sold of $62,000, and operating expenses of $19,000. Dylan's shop also had other revenue of $3,000 received for allowing the shop to be used in taping a television show. Each brother claims to have won the contest. Provide explanations as to why each would think so, and then name the winner.

 

 

18.              Use the information from the following single-step income statement to prepare a multistep income statement in proper form.

 

Midway Industries

Income Statement

For the Year Ended December 31, 2010

Revenues

 

Net sales

$10,000

 

 

Interest income

       300

 

 

Total revenues

 

               $10,300

 

 

 

 

Costs and expenses

 

Costs of goods sold

$ 5,000

 

 

Selling expenses

3,000 

 

 

General and administrative expenses

1,800

 

 

Interest expense

       800

 

 

Total costs and expense

 

                   10,600

Net income (loss)

 

                ($     300)

 

 

 

 

 

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