ACC201 Problem 6 Multiple-Step Income Statement

Problem - VI — Multiple-Step Income Statement

Below is a partial listing of the adjusted account balances of Murray Department Store at year end

on December 31, 2005.

Accounts Receivable                                                                $ 19,000

Cost of Goods Sold                                                                       255,000

Selling Expenses (includes depreciation)                                       35,000

Interest Expense                                                                      1,000

Accumulated Depreciation—Building                                      10,000

Sales Discounts                                                                       22,000

Merchandise Inventory                                                            45,000

Administrative Expenses (includes depreciation)                    15,000

Sales                                                                                        330,000

Accounts Payable                                                                    14,000

Interest Revenue                                                                      800

Instructions

Using whatever data you believe appropriate, prepare a multiple-step income statement for Murray

Department Store for the year ended December 31, 2005