Accounting: Single Step and Multiple Step Income Statement, Balance Sheet, Inventory Ledger and Gross Profit Calculation

Running head: ACCOUNTING
ACCOUNTING
Name of the Student:
Name of the University:
Author’s Note:

1ACCOUNTING
Question 1
A.
Single Step Income Statement for Nothing New Ltd
Particulars $ $
Revenues
Sales 2000000
Less: Sales Return 40000
Less: Discount on sales 30000 1930000
Interest Revenue 200
Total Revenues 1930200
Expenses
Cost of Good Sold 1140000
Accumulated Amortization,
Furniture 80000
General Expenses 200,000
Interest Expense 8,000
Interest Payable 1,000
Salary Payable 15,000
Selling Expenses 400,000
Total Expenses 1844000
Net Profit 86200
B.
Particulars $ $
Nathan Capital Balance 241800
Add: Net Profit 86200
less: Drawings 50000
Nathan Closing Capital
Balance 278000
C.

2ACCOUNTING
Balance Sheet as on
Assets
Non-Current Assets $ $
Furniture 320000
less: Depreciation 80000 240000
Total Non-Current Assets 240000
Current Assets
Inventory 200000
Account Receivable 110000
Supplies 20000
Cash 20000
Total Current Assets 350000
Total Assets 590000
Equities and Liabilities
Nathan's Capital 278000
Total Equity 278000
Non-Current Liabilities
Long term loan 130000
Total Non-Current Liabilities 130000
Current Liabilities
Account Payable 60000
Interest Payable 1000
Salary Payable 15000
Unearned Revenues 10000
Total Current Liabilities 86000
Total Equities and Liabilities 494000
Question 2
A
SMultiple Step Income Statement for Nothing New Ltd
Particular $ $
Revenues
Sales
200000
0
Less: Sales Return 40000
Less: Discount on sales 30000
193000
0
Cost of Good Sold
114000
0