Question

A Cut Above Beef Company uses a perpetual inventory system. The records of A Cut Above Beef Company list the following selected accounts for the quarter ended April 30, 2024: 5 Click the icon to view the accounts.) Read the requirements. Requirement 1. Prepare a single-step income statement. (Abbreviation used: Eq. = Equipment.) Data Table A Cut Above Beef Company Income Statement $ 200 Accounts Payable $ 17,300 Quarter Ended April 30, 2024 45,200 33,500 Revenues: Interest Revenue Merchandise Inventory Notes Payable, long-term Salaries Payable 44,000 2,600 Accounts Receivable Accumulated Depreciation Equipment Common Stock 36,500 45,000 Net Sales Revenue Retained Earnings 17,280 291,000 21,800 Dividends 17,000 2,500 Cash 7,300 6,600 Cost of Goods Sold 160,050 13,400 133,000 Rent Expense (Selling) Salaries Expense (Administrative) Office Supplies Unearned Revenue Interest Expense Depreciation Expense-Equipment (Administrative) Utilities Expense (Administrative) Delivery Expense (Selling) 1,900 Equipment Interest Payable Rent Expense (Administrative) Salaries Expense (Selling) Utilities Expense (Selling) 800 9,900 1,330 4,200 6,200 3,200 10,900 Print Done Done Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

1	Single step method
	Single step method
	A CUT ABOVE Beef Company
	Income Statement
	Quarter ended 30th April 2024
	Revenue	$                                                    2,91,000
	Interest Revenue	$ 200
	Total Revenue	$                                                    2,91,200
	Cost of Goods Sold	$                                                    1,60,050
	Rent Expenses (selling)	$                                                       21,800
	Interest Expense	$ 1,900
	Depreciation Expense -Equipment	$                                                          1,330
	Salaries Expense (administrative)	$ 2500
	Salaries Expense(Selling)	$ 6200
	Utilties Expense (Administrative)	$                                                          4,200
	Delivery Expense (selling)	$                                                          3,200
	Rent Expenses (administrative)	$                                                          9,900
	Utilities Expense (selling)	$                                                       10900
	Total Expense	$                                                    2,21,980
	Net Income/Loss	$ 69,220
2	Multi Step Income Statemenet
	Single step method
	A CUT ABOVE Beef Company
	Income Statement
	Quarter ended 30th April 2024
	Net Sales Revenue		$       2,91,000
	Cost of Goods Sold		$       1,60050
	Gross Profit		$ 2,74,950
	Operating Expenses
	Selling Expense
	Rent Expense	$                                                       21,800
	Delivery Expense	$                                                          3,200
	Salaries Expense	$ 6,200
	Utilities Expense	$                                                       10,900	$           42,100
	Administrative Expense
	Salaries Expense	$ 2500
	Depreciation Expense-Equipment	$                                                          1,330
	Utilities Expense	$                                                          4,200
	Rent Expense	$                                                          9,900	$           17,930
	Total Operating Expense		$ 60,030
	Operating Income		$ 214,920
	Other Income/Expenses
	Interest Expense	$ 1,900
	Interest Income	$                                                            -200	$ 1700
	Net Income		$ 213,220
3	Gross Profit	$                                                    1,74,950
	Gross Profit %	Gross Profit/Sales
		$274950/$291000
		94.48%
	Yes, A cut above beef company did achieve the gross profit % of more than 50%