Question

Exercise 5-11 (Part Level Submission)

An alphabetical list of Blossoms Company's adjusted accounts at its fiscal year end, August 31, 2017, follows. All accounts have normal balances.

Accounts payable		$15,500		Notes payable		$42,000
Accumulated depreciation—equipment		14,000		Prepaid insurance		575
Accumulated depreciation—furniture		17,500		R. Smistad, capital		65,750
Cash		25,450		R. Smistad, drawings		70,000
Cost of goods sold		271,500		Rent expense		24,000
Depreciation expense		7,000		Salaries expense		50,000
Equipment		35,000		Salaries payable		2,250
Furniture		42,000		Sales		465,000
Insurance expense		3,575		Sales returns and allowances		16,300
Interest expense		2,100		Supplies		950
Interest payable		525		Supplies expense		6,325
Merchandise inventory		70,350		Unearned revenue		2,600

Additional information:

1. Of the notes payable, $6,000 becomes due on February 17, 2018. The balance is due in 2019.
2. On July 18, 2017, R. Smistad invested $3,500 cash in the business.

(a1)

Prepare a multiple-step income statement. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer 1