Problem – VI Multiple-Step Income Statement

Below is a partial listing of the adjusted account balances of Murray Department Store at year end

on December 31, 2005.

Accounts Receivable $ 19,000

Cost of Goods Sold 255,000

Selling Expenses (includes depreciation) 35,000

Interest Expense 1,000

Accumulated Depreciation Building 10,000

Sales Discounts 22,000

Merchandise Inventory 45,000

Administrative Expenses (includes depreciation) 15,000

Sales 330,000

Accounts Payable 14,000

Interest Revenue 800

Instructions

Using whatever data you believe appropriate, prepare a multiple-step income statement for Murray

Department Store for the year ended December 31, 2005