Prepare a balance sheet at june 30 2017

Accounting

Preparing a correct Multiple‐Step Income Statement Grading Guide

ACC/290 Version 7

2

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Preparing a Multiple‐Step Income Statement Grading Guide

ACC/290 Version 7

Principles of Accounting I

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Individual Assignment: Preparing a correct Multiple‐Step Income Statement
Purpose of Assignment

The purpose of this assignment is to help you become familiar with the parts of the multiple‐step income statement.
Resources Required
Financial Accounting: Tools for Business Decision Making.

Grading Guide
Content

Met

Partially Met

Not Met

Comments:

Prepared a correct detailed multi-step income statement, assuming a 25% tax rate, with a brief explanation of 700 words.

Based the statement and explanation on the following scenario:

An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number of years.

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Determined the following: Net sales consist of sales $911,000, less freight-out on merchandise sold $33,000, and sales returns and allowances $28,000.

Determined the following: Other revenues consist of sales discounts $18,000 and rent revenue $4,000.

Selling expenses consist of salespersons’ salaries $80,000, depreciation on equipment $10,000, advertising $13,000, and sales commissions $6,000. The commissions represent commissions paid. At December 21, $3,000 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense.

Determined the following: Administrative expenses consist of office salaries $47,000, dividends $18,000, utilities $12,000, interest expense $2,000, and rent expense $24,000, which includes prepayments totaling $6,000 for the first quarter of 2018.

Showed work.

Total Available

Total Earned

5

#/5

Writing Guidelines

Met

Partially Met

Not Met

Comments:

The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements.

Intellectual property is recognized with in-text citations and a reference page.

Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper.

Sentences are complete, clear, and concise.

Rules of grammar and usage are followed including spelling and punctuation.

Total Available

Total Earned

3

#/3

Assignment Total

#

8

#/8

Additional comments: