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On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings...

On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows: Accounts Receivable $160,250 Accumulated Depreciation-Building 742,600 Administrative Expenses 515,600 Building 2,552,350 Cash 183,850 Common Stock 295,050 Cost of Goods Sold 3,903,350 Dividends 185,250 Interest Expense 10,200 Inventory 1,000,900 Notes Payable 254,900 Office Supplies 20,350 Retained Earnings 1,315,950 Salaries Payable 8,050 Sales 6,618,600 Selling Expenses 706,050 Store Supplies 86,700 A. Prepare a multiple-step income statement for the fiscal year ended March 31, 20Y9. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. B. What is a major advantage of the multiple-step income statement over the single-step income statement?

Labels
Expenses
For the Year Ended March 31, 20Y9
March 31, 20Y9
Other revenue and expense
Amount Descriptions
Gross profit
Net income
Net loss
Operating income
Total assets
Total liabilities
Total expenses
Total stockholders’ equity

A. Prepare a multiple-step income statement for the fiscal year ended March 31, 20Y9. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Royal Furnishings Company

Income Statement

B. What is a major advantage of the multiple-step income statement over the single-step income statement?

The multiple-step income statement shows the relationship of gross profit to sales.

The multiple-step income statement clearly presents the value of total revenues.

The multiple-step income statement clearly presents the value of total expenses.

The multiple-step income statement is less complex to prepare.

Business   Accounting   
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Homework Answers

Answer #1

A)

Royal Furnishings Company
Income Statement
For the Year Ended March 31, 20Y9
Sales $6618600
Cost of goods sold -3903350
Gross profit 2715250
Expenses
Administrative expenses 515600
Selling expense 706050
Total expenses -1221650
Operating income 1493600
Other revenue and expense
Interest expense -10200
Net income $1483400

B) The multiple income statement helps to show the relationship between the gross profit and sales. So, we can say that the answer is option A) The multiple-step income statement shows the relationship of gross profit to sales.

NOTE:- For any problem regarding the answer please ask in the comment section.

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