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P5-43B Preparing a multi-step income statement, journalizing closing entries, and
preparing a post-closing trial balance
Learning Objectives 4, 5
1. Operating Income $59,800
The adjusted trial balance of Rockin Robbin Dance Company at April 30, 2018, follows:
Requirements
1. Prepare Rockin Robbin’s multi-step income statement for the year ended April 30, 2018.
2. Journalize Rockin Robbin’s closing entries.
3. Prepare a post-closing trial balance as of April 30, 2018.
SOLUTION
Requirement 1
P5-44B Journalizing adjusting entries, preparing adjusted trial balance, and preparing
multi-step income statement
Learning Objectives 4, 5
2. Total Credits $480,345
The unadjusted trial balance for Tuttle Electronics Company follows:
Requirements
1. Journalize the adjusting entries using the following data:
a. Interest revenue accrued, $550.
b. Salaries (Selling) accrued, $2,800.
c. Depreciation Expense—Equipment (Administrative), $1,295.
d. Interest expense accrued, $1,500.
e. A physical count of inventory was completed. The ending Merchandise Inventory should
have a balance of $45,300.
f. Tuttle estimates that approximately $6,200 of merchandise sold will be returned with a
cost of $2,480.
2. Prepare Tuttle Electronics’s adjusted trial balance as of October 31, 2018.
3. Prepare Tuttle Electronics’s multi-step income statement for year ended October 31, 2018.
SOLUTION
P5-44B, cont.
Requirement 2
P5-44B, cont.
Requirement 3
P5-45B Preparing a single-step income statement, preparing a multi-step income statement,
and computing the gross profit percentage
Learning Objectives 5, 6
2. Operating Income $80,890
The records of Grade A Beef Company list the following selected accounts for the quarter ended
September 30, 2018:
Interest Revenue $ 900 Accounts Payable $ 17,000
Merchandise Inventory 46,300 Accounts Receivable 33,500
Notes Payable, long-term 47,000 Accumulated Depreciation—
Equipment
36,500
Salaries Payable 2,600 Common Stock 38,000
Net Sales Revenue 294,000 Retained Earnings 3,610
Rent Expense (Selling) 16,700 Dividends 15,000
Salaries Expense (Administrative) 2,500 Cash 7,300
Office Supplies 5,800 Cost of Goods Sold 161,700
Unearned Revenue 13,800 Equipment 131,000
Interest Expense 2,300 Interest Payable 900
Depreciation Expense—Equipment
(Administrative)
1,310 Rent Expense (Administrative) 7,400
Utilities Expense (Administrative) 4,500 Salaries Expense (Selling) 5,000
Delivery Expense (Selling) 3,100 Utilities Expense (Selling) 10,900
Requirements
1. Prepare a single-step income statement.
2. Prepare a multi-step income statement.
3. J. Douglas, manager of the company, strives to earn a gross profit percentage of at least 50%.
Did Grade A Beef achieve this goal? Show your calculations.
SOLUTION
Requirement 1
