1. Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2017 information related to P. Bride Company ($000 omitted).
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Administrative expense
|
|
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Officers' salaries
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$4,900
|
|
Depreciation of office furniture and equipment
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3,960
|
|
Cost of goods sold
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60,570
|
|
Rent revenue
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17,230
|
|
Selling expense
|
|
|
Delivery expense
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2,690
|
|
Sales commissions
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7,980
|
|
Depreciation of sales equipment
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6,480
|
|
Sales revenue
|
96,500
|
|
Income tax
|
9,070
|
|
Interest expense
|
1,860
|
Instructions -
(a) Prepare an income statement for the year 2017 using the multiple-step form. Common shares outstanding for 2017 total 40,550 (000 omitted).
2. Stacy Corporation had income from operations of $7,200,000. In addition, it suffered an unusual and infrequent pretax loss of $770,000 from a volcano eruption, interest revenue of $17,000, and a write-down on buildings of $53,000. The corporation's tax rate is 30%. Prepare a partial income statement for Stacy beginning with Income from operations. The operation had 5,000,000 shares of common stock outstanding during 2017.
3. Complete journal entries for the following transactions (from the mini-project). Note that the project requires using the Gross method (not the net method).
When preparing the journal entries, please make sure that your answers need to be consistent with your answer to R5 in "bonus assignment".
On January 12, purchase merchandise on account from Zapfel $3,000 and Liotta $2,400. Terms 1/10, n/30. Freight $120 for each sale, F.O.B. destination.
4. On January 15, send checks to Joosten for 9,000 less 2% cash discount, and to Maida for $11,000 less 1% cash discount.
7. On January 21, pay off the balances to Zapfel and Liotta for the purchases on January 12.
14. On July 5, purchase merchandise from Maida $33,000, terms 3/10, n/30.
19. On August 10, receive half of the payment from Lachey.
Attachment:- Assignment.rar