ACC1820 MANAGERIAL ACCOUNTING Project 1 Merchandise Account

ACC1820- MANAGERIAL ACCOUNTING Project # 1: Merchandise Accounting Review Part 3: Multi-step Income Statement-5 Points The records o f Grade A Steak Company list the following selected accounts for he quarter ended April 30, 2015: 33,500 Inventory 45,100Accounts receivable 53,300 2400 Angus, Capital, Jan 31 Sala ble 7,600 Sales returns & allowances 7,500 Cash 130,600 Sellin 38,300 Equipment Unearned sales revenue 13,300 Interest payable 1,200 Requirements: 1. Prepare a multi-step income statement Grade A Steak Company Income Statement For the quarter ended April 30, 2015

Solution

Sales Revenue:

Grade A streak Company
Income Statement
For the Quater Ended April 30, 2015
Sales Revenue:
Total Sales		$ 3,00,000.00
Sales Returns	$   7,500.00
Sales Discounts	$   2,000.00	$      9,500.00
Net Sales Revenue	$ 2,90,500.00
Less: Cost of Goods Sold:	$ 1,62,100.00
Gross Profit	$ 1,28,400.00
Operating Expenses
Selling Expenses:	$ 38,300.00
Administrative Expenses:	$ 16,300.00
Total Operating Expenses	$    54,600.00
Net Income	$    73,800.00