Preparing a single-step income statement, preparing a multi-step income statement, and computing the gross profit percentage
The records of Grade A Steak Company list the following selected accounts for the quarter ended April 30, 2015:
|
Interest Revenue
|
$ 800
|
Accounts Payable
|
$ 17,000
|
|
Merchandise Inventory
|
45,100
|
Accounts Receivable
|
33,500
|
|
Notes Payable, long-term
|
47,000
|
Accumulated Depreciation-Equipment
|
37,600
|
|
Salaries Payable
|
2,400
|
Angus, Capital, Jan. 31
|
53,300
|
|
Sales Discounts
|
2,000
|
Angus, Withdrawals
|
20,000
|
|
Sales Returns and Allowances
|
7,500
|
Cash
|
7,600
|
|
Sales Revenue
|
296,100
|
Cost of Goods Sold
|
162,100
|
|
Rent Expense (Selling)
|
21,780
|
Equipment
|
130,600
|
|
Office Supplies
|
5,700
|
Interest Payable
|
1,200
|
|
Unearned Revenue
|
13,300
|
Rent Expense (Administrative)
|
9,780
|
|
Interest Expense
|
2,000
|
Utilities Expense (Selling)
|
10,890
|
|
Depreciation Expense-Equipment (Administrative)
|
1,630
|
Delivery Expense (Selling)
|
3,630
|
|
Utilities Expense (Administrative)
|
4,890
|
|
|
Requirements
1. Prepare a single-step income statement.
2. Prepare a multi-step income statement.
3. M. Davidson, manager of the company, strives to earn a gross profit percentage of at least 50%. Did Grade A achieve this goal? Show your calculations.