Question

The following information was taken from the accounts of Green Market, a delicatessen, at December 31, 2018. The accounts are listed in alphabetical order, and each has a normal balance. Accounts payable Accounts receivable Advertising expense Cash Common stock Cost of goods sold Interest expense Merchandise inventory Prepaid rent Retained earnings, 1/1/2018 Sales revenue Salaries expense Rent expense Gain on sale of land $ 604 404 200 414 204 600 66 410 44 639 1,040 170 100 79

Answer 1

Ans. 1	GREEN MARKET
	Single - Step Income Statement
	For the Year Ended December 31, 2018
	Particulars	Amount	Amount
	Net sales revenue		$1,040
	Expenses:
	Cost of goods sold	-$600
	Advertising expense	-$200
	Interest expenses	-$66
	Salaries expense	-$170
	Rent expense	-$100
	Total Cost and Expenses		-$1,136
	Add: Gain on sale of land		$79
	Net Loss		-$17
Ans. 2	GREEN MARKET
	Multi step Income Statement
	For the Year Ended December 31, 2018
	Particulars	Amount	Amount
	Net Sales Revenue		$1,040
	Cost of goods sold		-$600
	Gross margin		$440
	Operating expenses:
	Selling expenses:
	Advertising expense	-$200
	Salaries expense	-$170
	Rent expense	-$100
	Total Operating Expenses		-$470
	Operating loss		-$30
	Non operating items
	Interest expenses		-$66
	Gain on sale of land		$79
	Net Loss		-$17
	*All expenses are indicated with minus sign.