ves 5, 6 P5-38A Preparing a single-step income statement, preparing a multi inco

Question

ves 5, 6 P5-38A Preparing a single-step income statement, preparing a multi income statement, and computing the gross profit percenta Learning Objectives 5, 6 P5-38A Preparing a single-st ge 2. Operating Income $91,420 The records of Farm Quality Steak Company list the following selected accounts fr the quarter ended April 30, 2018 S 400 Accounts Payable 17,00 Interest Revenue Merchandise Inventory Notes Payable, long-term Salaries Payable Net Sales Revenue Rent Expense (Selling) Salaries Expense (Administrative Office Supplies Unearned Revenue Interest Expense Depreciation E 45,000 Accounts Receivable 54,000 Accumulated Depreciation-Equipment 37,700 5,380 25,000 7,100 154,960 32,000 2,800 Fisher, Capital 298,000 Fisher, Withdrawals 15,100 Cash 2,000 Cost of Goods Sold 6,500 Equipment 13,100 Interest Payable xpense-Equipment (Administrative) nse (Administrative 2,100 Rent Expense (Administrative) 1,320 Salaries Expense (Selling) 4,600 Utilities Expense (Selling) 3,800 7,100 6,000 10,000 Delivery Expense (Selling) Requirements 1. Prepare a single-step income statement. 2. Prepare a multi-step income statement. 3. M. Fisher, owner of the company, strives to earn a gross profit percentage least 50%. Did Farm Quality achieve this goal? Show your calculations.

Explanation / Answer

1. Single Step Income Statement Quality Steak Company Income Statement For the quarter ended April 30, 2018 Revenues: Sales Revenues $298,000 Interest Revenues 400 Unearned revenue 13,100 Total Revenues $311,500 Expenses: Cost of Goods Sold $154,960 Depreciation Expense 1,320 Rent Expense 22,200 office supplies 6,500 Salaries Expense 10,800 Utilities Expense 14,600 Delivery expense 3,800 Interest expense 3,800 Total Expenses $217,980 Net Income $93,520 Note:- Rent expense= 15100+7100 (rent expense selling+rent expense adminstrative) Salaries Salaries expenes(adm) + salaries (selling)+ salaries payable 2000+6000+2800 Utilities = (utility expense selling+utility expense adminstrative) 10000+4600 Interest espense Interest expense+interest payable 2100+1700 2. Multistep Income Statement Quality Steak Company Income Statement For the quarter ended April 30, 2018 Sales Revenue: Total Sales $298,000 Net Sales Revenue $298,000 $298,000 Less: Cost of Goods Sold: Cost of Goods Sold $154,960 Gross Profit $143,040 Operating Expenses Selling Expenses: Rent Expense 15,100 Delivery Expense 3,800 Salary Expense 6,000 Utility Expense 10,000 Administrative Expenses: Office Salaries Expense 4,800 Office Rent Expense 7,100 Office Supplies Expense 6,500 Utility Expense 4,600 Total Operating Expenses 57,900 Operating Income $85,140 Other Incomes and Expenses: Unearned revenue $13,100 Interest revenue $400 Depreciatin expense -1320 ? Interest Expense -3800 Net Other Incomes and Expenses $8,380 Net Income $93,520 3. GP percentage= Gross Profit/ Sales*100 143040/298000*100 48% No Farm Quality did not achieve the goal of Gross Profit of 50 % as the farn earned 48%

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.