Question

Problem 4-28A Preparing schedule of cost of goods sold and multistep and single-step income statements: Periodic system (Appendix) LO 4-9

The following account titles and balances were taken from the adjusted trial balance of King Co. for Year 2. The company uses the periodic inventory system.

Account Title	Balance
Sales returns and allowances	$	11,600
Miscellaneous expense		6,200
Transportation-out		19,200
Sales		21,300
Advertising expense		920
Salaries expense		162,000
Transportation-in		3,300
Purchases		21,000
Interest expense		59,000
Merchandise inventory, January 1		332,000
Rent expense		9,200
Merchandise inventory, December 31		6,800
Purchase returns and allowances		11,400
Loss on sale of land		5,200
Utilities expense		12,400

Required
a. Prepare a schedule to determine the amount of cost of goods sold. (Amounts to be deducted should be indicated with minus sign.)
  

cost of goods av for sale	0
cost of goods sold	$0

b. Prepare a multistep income statement.
  

sales
net sales		0
		0
operating exp
5
		0
total op exp		0
		0
non op items

c. Prepare a single-step income statement.
  

	KING CO. Income Statement For the Year Ended December 31, Year 2 Sales Net sales $0 Operating expenses Total expenses 0 Non-operating items 0 $0

Answer 1