Single step and multistep income statements
The following information was taken from the accounts of Helen’s Groceries, a delicatessen. The accounts are listed in alphabetical order, and each has a normal balance.
|
Accounts payable |
$600 |
|
Accounts receivable |
400 |
|
Advertising expense |
200 |
|
Cash |
410 |
|
Common stock |
200 |
|
Cost of goods sold |
600 |
|
Interest expense |
70 |
|
Merchandise inventory |
450 |
|
Prepaid rent |
40 |
|
Retained earnings |
|
|
(Beginning balance) |
635 |
|
Sales revenue |
1,000 |
|
Salaries expense |
130 |
|
Supplies expense |
110 |
|
Loss on sale of land |
25 |
Required
First, prepare an income statement using the single step approach. Then prepare another income statement using the multistep approach.