The following information relates to Ashton Appliances for 2009.Accounts payable ……………. $ 18,000Accounts receivable …………… 70,000Accumulated depreciation, building …….. 100,000Accumulated depreciation, fixtures ……… 30,000Bonds payable (due in 7 years) ………. 192,000Building ………………. 300,000Cash ……………….. 41,000Common stock ……………. 245,000Cost of goods sold …………… 510,000Depreciation expense, building ……….. 10,000Depreciation expense, fixtures ………. 12,000Furniture and fixtures ………….. 130,000Income tax expense …………… 14,000Income tax payable …………… 12,000Insurance expense …………… 36,000Interest expense …………….. 21,000Inventory ………………. $ 60,000Other assets ……………… 93,000Rent expense, store equipment ………. 79,000Retained earnings, 12/31/2008 ………. 54,000Salaries expense, administrative ………. 101,000Salaries payable …………….. 7,000Sales revenue ……………… 946,000Wages expense, store …………… 127,000Required:1. Prepare a single-step income statement for 2009, a statement of retained earnings for 2009, and a properly classified balance sheet as of December 31, 2009.2. How would a multiple-step income statement be different from the single-step income statement you prepared for Ashton Appliances?View Solution:
The following information relates to Ashton Appliances for 2009