98. The following cash-basis income statement has been prepared for the first year of business.
Kitchen Mart, Inc.
Statement of Cash Receipts and Expenditures
For the Year Ending December 31, Year 1
Cash Receipts from Sales of Merchandise$26,000
Less:Cash Expenditures for Merchandise and Services
Merchandise$12,000
Salaries5,000
Rent
Total Cash ExpendituresExcess of Cash Receipts over Cash Expenditures
At year-end, the firm had inventory with a cost of $3,000 remaining. Also, customers owed $2,500 for goods that had already been delivered. The utilities for December were $500 and were billed to but not yet paid by the company. The rent of $3,500 for January, Year 2, was paid in December, Year 1.
Required:
Prepare an accrual-basis income statement for the year.
99. The accounting records for Magic Chocolate Castle contained the following data for the current year:
Sales$517,500
Cost of goods sold213,800
Interest revenue6,500
Rent revenue3,600
Administrative expense131,300
Selling expense133,600
Interest expense15,400
Income tax expense8,100
Loss on sale of warehouse6,500
Required:
Prepare both a single-step and a multi-step income statement for Magic for the current year.