Preparing a multi step income statement and a classified balance sheet
Link Back to Chapter 4 (Classified Balance Sheet). The accounts of Smith Electronics Company are listed along with their balances before closing for the month ended October 31, 2012.
|
Interest revenue |
$ 500 |
Accounts payable |
$ 16,900 |
|
Inventory |
45,400 |
Accounts receivable |
33,900 |
|
Note payable, long–term |
47,000 |
Accumulated depreciation |
38,100 |
|
Salary payable |
3,400 |
Smith, capital, Sep 30 |
52,500 |
|
Sales discounts |
2,700 |
Smith, drawing |
19,000 |
|
Sales returns and allowances |
8,100 |
Cash |
7,600 |
|
Sales revenue |
296,500 |
Cost of goods sold |
162,100 |
|
Selling expense |
37,500 |
Equipment |
130,900 |
|
Supplies |
6,300 |
General expenses |
16,200 |
|
Unearned sales revenue |
13,800 |
Interest payable |
1,000 |
Requirements
1. Prepare Smith Electronics’ multi step income statement.
2. Prepare Smith Electronics’ statement of owner’s equity.
3. Prepare Smith Electronics’ classified balance sheet in report form.