Question

Exercise 4-14A Single-step and multistep Income statements LO 4-6 The following information was taken from the accounts of Green Market, a small grocery store, at December 31, Year 2. The accounts are listed in alphabetical order, and all have normal balances. Accounts payable Accounts receivable Advertising expense Cash Common stock Cost of goods sold Interest expense Merchandise inventory Prepaid rent Retained earnings, 1/1/Year 2 Sales revenue Salaries expense Rent expense Gain on sale of land $ 800 2,250 600 1,850 2,000 2,950 120 1,250 720 2,610 5,600 960 510 200 Required Prepare an income statement for the year using the single-step and multistep approach. (Amounts to be deducted and losses should be indicated with a minus sign.) Single-step GREEN MARKET Income Statement For the Year Ended December 31, Year 1 Expenses Prey 5 of 7 Next >

Answer 1

① single-step Income statement a GREEN MARKET For the Year Ended December 31, Year! $ 5600 Expenses Cost of goods sold $(2950) prepiense Il $ ( 120) . Solaries expense & 960) $ ( 510) Sales Revenue 600) Interest expense e Rend Expense Total cost and expenses Gain on sale of land. Ned income & (5140) € 200 & 660

② Mullistep GREEN MARKET In come Slademend For the Year Ended December 3L Yeart $ 5600 Sales Revenue 18 (8950) 8 2650 cost of goods sold Operating expenses Grow Margin Salluted expenses Adverlesing expenses Ront expenia 1$ (960) $ (6001 9 (510) 8 (2010) Tola) Operading expenses Operoling again Non-Operating items Interest Pixpenses 18 580 Gain on selief land Is (120) 4 200 Nel income $ 660